Oil Falls as Talk of Libya, Nigeria Caps Can’t Dispel OPEC Doubt

Futures were down 1 percent in New York, extending last week’s 3.9 percent drop. The two African producers, who were exempt from supply cuts because of internal strife but are now recovering, have been invited to a July 24 meeting in Russia to discuss whether their production has stabilized, Kuwait’s Oil Minister Issam Almarzooq said in Istanbul. BNP Paribas SA sharply reduced its price forecasts for this year and next because supply growth elsewhere is diluting the impact of the OPEC-led curbs.

Oil in New York and London remains in a bear market amid concerns elevated global oil inventories and rising supply will offset curbs by the Organization of Petroleum Exporting Countries and its partners including Russia. Libya and Nigeria together added 440,000 barrels a day of production in May and June as fields restarted, according to data compiled by Bloomberg. It’s premature to talk about deepening output cuts, OPEC Secretary-General Mohammad Barkindo said in Istanbul.

“Sentiment in the oil market is still negative,” Giovanni Staunovo, an analyst at UBS Group AG said. “In order to change that, a series of large inventory drawdowns in the U.S. is probably needed.”

West Texas Intermediate for August delivery was down 46 cents or 1 percent at $43.77 a barrel as of 6:52 a.m. New York time. Total volume traded was about 20 percent above the 100-day average. Prices fell $1.29, or 2.8 percent, to $44.23 on Friday.

Brent for September settlement fell 48 cents to $46.23 a barrel on the London-based ICE Futures Europe exchange. Prices slid 2.5 percent last week. The global benchmark crude traded at a premium of $2.28 to September WTI.
more at:  https://www.bloomberg.com/news/articles/2017-07-09/oil-gains-after-weekly-loss-as-libya-may-be-asked-to-cap-output