Brent crude oil was poised to post another weekly loss this week as investors saw oversupply as more pertinent than geopolitical problems around the world.
The commodity traded at $102.39 at 8:10 GMT as output from the U.S. and Libya increased and global demand looked shaky.
CNBC reported that U.S. crude production reached a 28 year high this month due to the nation’s shale production. The American Petroleum Institute released a report on Thursday showing that the nation’s oil imports were on the decline as the shale oil boom has been meeting the country’s demand needs.
Adding to the market’s supply glut was also Libyan oil as the nation slowly reopens its export terminals and works toward returning to its normal export capacity after a year of protests kept its production subdued.
Libyan exports have reached 612,000 barrels per day, a far cry from the nation’s 1.4 million bpd capacity, but a marked improvement from the 100,000 bpd it was producing earlier in the year.
Meanwhile the demand for crude is likely to remain subdued as PMI data from China and the eurozone has painted a worrying picture for the two nations’ recoveries.
Moving forward, investors will likely keep their eyes on the Jackson Hole summit, where the world’s top central bankers and economists are meeting to discuss the state of the global economy.
On Friday, Federal Reserve Chair Janet Yellen is due to speak about the recent progress seen in the U.S. Markets will be watching closely, hoping for any clues about the bank’s plans to raise its main interest rate.
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