MARKET WATCH: Oil futures drop on expected resumption in Libyan supply

Crude oil futures prices fell on New York and London markets Apr. 7 on expectations that two eastern Libyan ports that export oil would be reopened soon, increasing world oil supplies.

On Apr. 6, Libyan government officials and rebels indicated they had reached an agreement to reopen two terminals that together normally export an estimated 200,000 b/d, mostly to Europe.

Meanwhile, analysts noted previously reported agreements have fallen apart. Many analysts advocated a cautious approach regarding the pace and volume of Libyan oil exports. Unrest and labor disputes have blocked some eastern Libya terminals and limited some production since last summer.

Recent resumption in some oil production has proved temporary given continued political unrest.

Libya’s Atty. Gen. Abdulqader Radwan told The Wall Street Journal that government representatives reached an agreement to reopen the ports of al-Hariga and Zueitina.

“The problem [of port closures] has been partially solved,” Radwan said. He noted that negotiations continue to reopen two larger ports, Es Sider and Ras Lanuf.

Meanwhile, a political group led by militia leader Ibrahim al-Jathrana reportedly hosted a news conference on Apr. 6, confirming an agreement regarding al-Hariga and Zueitina.

Energy prices

The New York Mercantile Exchange May crude oil contract dropped 70¢ on Apr. 7, closing at $101.44/bbl. The June contract gave up 68¢ to $99.78/bbl.

The May natural gas contract gained 3.7¢ to a rounded $4.48/MMbtu. The Henry Hub cash price for gas was unavailable on Apr. 7.

Heating oil for May delivery dropped 1.7¢ to a rounded $2.89/gal. Reformulated gasoline stock for oxygenate blending for May delivery decreased about half a cent to remain at a rounded $2.93/gal.

In London, the May ICE contract for Brent crude delivery dropped 90¢ to close at $105.82/bbl. The June contract was up 81¢ to $105.82/bbl. The ICE gas oil contract for April dipped $8 to $885.50/tonne.

The Organization of Petroleum Exporting Countries reported its basket of 12 benchmark crudes was $102.16/bbl on Apr. 7, declining 96¢.

Contact Paula Dittrick at paulad@ogjonline.com.

Related Articles

Uneven effects seen from new Appalachian pipelines

09/15/2014 Producers in the Appalachian basin will benefit unevenly from markets opening for natural gas from the Marcellus and Utica shales, according to a C...

AAPG ICE: Turkey sees early shale oil development

09/15/2014 Turkey is slightly larger than the state of Texas geographically, yet the country has only seen 4,400 wells drilled since 1940. While Texas’ oil hi...

Giesler joins Miller as chief executive

09/15/2014 Carl F. Giesler Jr. has joined Miller Energy Resources Inc., Knoxville, Tenn., as chief executive officer, replacing Scott M. Boruff, who is now ex...

Miller seeks Buccaneer’s Alaskan assets

09/15/2014 Miller Energy Resources Inc., Knoxville, Tenn., has signed a nonbinding letter of intent to buy Alaskan operating assets of Buccaneer Energy for $4...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected