Light, sweet crude oil prices gained on the New York market July 10 as did Brent crude prices on the London market. But Brent fell July 11 upon reports Libya’s National Oil Corp. lifted its force majeure on eastern oil ports.
The reopening of ports will enable Libya to resume full oil production. NOC in June had reported rebel attacks, starting with Es-Sider and Ras Lanuf terminals. The NOC had declared force majeure on oil loadings at four ports.
But NOC on July 11 announced "the lifting of force majeure" at the Al-Hariga, Zweitina, Ras Lanuf, and Al-Sidra ports.
Crude oil benchmark prices immediately fell on news of the likelihood of Libyan crude oil returning to world markets. Bjornar Tonhaugen, vice-president for oil markets at consultancy Rystad Energy AS, estimated 700,000 b/d eventually will return.
“The situation in Libya is very precarious right now and challenging on the geopolitical front,” Tonhaugen said, adding more supply disruptions are possible.
Energy prices
The August light, sweet crude contract rose 25¢ to settle at $74.11/bbl on July 10. The September price gained 58¢ to $72.56/bbl.
The NYMEX natural gas price for August fell 4¢ to a rounded $2.79/MMbtu. The Henry Hub cash gas price was $2.84, down 2¢.
Ultralow-sulfur diesel for August increased 2¢ to a rounded $2.22/gal. The NYMEX reformulated gasoline blendstock for August gained 1¢ to a rounded $2.16/gal.
Brent crude oil for September increased 79¢ to $78.86/bbl on London’s International Commodity Exchange. The October contract gained 77¢ to $78.62/bbl. The gas oil contract for July was $677.75/tonne, up $6.
The OPEC basket of crudes average price for July 10 was $76.34, up $1.11.
Contact Paula Dittrick at [email protected].