Oil prices fell for the second session today, Monday, after Libya resumed production at the beginning of the week, while China, the world’s largest importer of crude, is expected to issue data showing that the post-pandemic economic recovery is facing stumbling blocks.
Brent crude futures fell 57 cents, or 0.7%, to $79.30 a barrel by dawn today, Monday, while US West Texas Intermediate crude fell 52 cents, or 0.7%, to $74.90 a barrel.
Prices fell after the two benchmarks achieved gains last week for the third week in a row, touching the highest level since April, when production stopped in a number of Libyan oil fields and Shell stopped Nigerian crude exports, which led to tight supplies.
Four oil engineers and the Libyan Oil Ministry said that the production that stopped on Thursday in Sharara and El Feel fields resumed on Saturday evening, with a total production capacity of 370,000 barrels per day, and the 108 field remained closed.
Production was halted in these fields in the wake of a protest against the kidnapping of former Finance Minister Faraj Boumtari.
Two sources said on Friday that oil exports from Russia’s western ports are set to decrease by 100,000 to 200,000 barrels per day next month compared to July levels, indicating Moscow’s fulfillment of its commitments to new supply cuts in agreement with Saudi Arabia, which currently heads the Organization of Exporting Countries. Oil (OPEC).
Source: National Iraqi News Agency