Brent Slides On Libyan Port Reopening
Brent crude oil suffered its largest loss in almost a month, bringing it down near $108.
The commodity was steady at $108.31 at 4:30 GMT on Tuesday morning after an increase in Libyan supply was announced.
Reuters reported that Libya’s state-run National Oil Corp said on Monday that it would lift a force majeure from its Zeuitina oil port.
The reopening of this eastern port is the second after the government made a deal with rebels to unblock major terminals after eight months of depressed exports.
Though the markets have responded to the announcement, many analysts see investors as cautious until operations are underway. Libya has been working to reopen its export terminals for some time, and this is not the first time the government has said they would resume production.
The conflict in Ukraine remains a factor for Brent prices, but investors were unconcerned about the effects of new sanctions against Russia on its energy supply. After the tension between Moscow and the West increased over the weekend due to a hostage situation in Ukraine, US officials implemented more sanctions on Russian businesses and individuals with ties to President Vladimir Putin. Despite the escalation, most don’t expect that the conflict will reach a point at which energy or crude is affected.
Meanwhile, US commercial crude stockpiles are expected to have risen 1.9 million barrels in the week ending on April 25, a new high. Last week’s reports showed that crude inventories had grown to 397.7 million barrels, the highest level in more than 30 years.
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