Libya’s crude output dropped after clashes forced two of the country’s biggest oil ports to shut down, threatening the OPEC member’s efforts to revive the production of its most important commodity. The North African country’s production fell to 650,000 barrels a day from about 700,000 barrels a few days ago, according to a person with knowledge of the matter, who asked not to be identified because the person isn’t authorized to speak to media. Crude shipments from Es Sider, the nation’s largest oil port, and Ras Lanuf, its third-biggest, have been suspended until security improves and workers return to the facilities, Jadalla Alaokali, a board member of Libya’s National Oil Corp., said by phone. Production from fields feeding the ports has declined and may be cut further if the two terminals remain shut and the situation doesn’t improve soon, he said. click Read More below for more of the story
Futures rose 0.2 percent in New York, extending a third weekly gain. U.S. President Donald Trump’s administration imposed new sanctions on Iran and warned the Islamic Republic that it was “playing with fire” by testing missiles. U.S. drillers boosted the rig count by 17 to 583, the most since October 2015, according to Baker Hughes Inc.
“Geopolitical risk and the oil nations’ production cuts give a floor to prices,” said Giovanni Staunovo, an analyst at UBS Group AG. “Fears of a too strong U.S. supply response and U.S. oil inventories are limiting the upside at present. The next trigger for prices will come from the production cuts leading to inventory draw-downs.”
West Texas Intermediate for March delivery was at $53.98 a barrel on the New York Mercantile Exchange, up 15 cents, at 11:41 a.m. in London. Total volume traded was about 33 percent below the 100-day average. The contract gained 29 cents, or 0.5 percent, to $53.83 on Friday.
Brent for April settlement rose 5 cents to $56.86 a barrel on the London-based ICE Futures Europe exchange. Prices advanced 2.3 percent last week. The global benchmark crude traded at a premium of $2.19 to April WTI.
more at: https://www.bloomberg.com/news/articles/2017-02-06/oil-trades-near-54-as-u-s-shale-boom-tests-opec-supply-cuts