Crude oil prices declined amid concern for production growth in Libya

Oil production facility

Oil production facilityThe crude oil prices declined moderately amid concern that the growth of production in Libya could compromise the agreement of OPEC for yields reduction. The futures of Brent oil with March delivery on London’s ICE Futures Exchange fell by 0.19 USD (-0.34%) to 56.27 USD per barrel. The quotations for the US light WTI crude with delivery in February decreased by 0.12 USD (-0.23%) to 53.14 USD per barrel. During yesterday’s session, WTI and Brent rose respectively by 1.78% to 53.26 USD per barrel and 56.46 USD per barrel.

Libya, which does not participate in OPEC agreement to cut oil production, increased the yield from the biggest country’s field and is preparing to resume work on the big export terminal Az Zawiyah.

According to sources from the Libyan state oil company National Oil Corp, the country currently produce around 700,000 barrels per day against 630,000 barrels per day in December. Libya plans to double the production of raw material in 2017.

On the other hand, in December the total oil production of OPEC countries fell by 310,000 barrels due to interruption of operations in the fields in Nigeria.

Market participants follow with great attention the change in stocks of raw material in the US. According to the American Petroleum Institute (API), out yesterday, stocks last week fell by 7.43 million barrels, which might cause with appreciation of the commodity price.

The official figures from the energy ministry will be published later today. The observers and analysts expect a more moderate decline of around 2 million barrels.

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