Brent Slips On Rising Libyan Exports
Brent crude oil slipped on Wednesday morning as concern about supply interruptions eased following reports that Libya could ramp up its crude exports. The commodity traded at $108.93 at 7:36 GMT on Wednesday morning. Reuters reported that Libya's Prime Minister claimed that oil exports would resume within one week at the nation's eastern Hariga port.
Libyan oil has been exported at less than half of capacity for almost two months as labor strikes kept several of the nation's largest export terminals closed. The Hariga port will open with a capacity of 110,000 barrels per day, which will ease concerns about tightening Brent supply.
Investors will also be keeping a close eye on the US Federal Reserve policy meeting, which comes to a close on Wednesday afternoon. The bank is widely expected to maintain its $85 billion per month bond buying plan in the wake of Washington's budget battle and government shutdown.
September data from the US hasn't been impressive, proving that even before political uncertainty caused an upset, the nation's recovery was treading on fragile ground. Now, most aren't expecting the US central bank to cut back on its stimulus spending until at least March, when the nation's budget has been agreed upon.
Also on investors' minds will be a meeting between six world powers and Iranian officials over Iran's disputed nuclear program. Sanctions on Iranian oil have elevated Brent prices for years and now, as President Hassan Rouhani shows a willingness to work on his nation's icy relationship with the west, oil prices have fallen under pressure.
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