Libyan supply disruption rescued oil from price lows
London (Reuters): Oil rose on Tuesday, after Libya said loadings of crude at a key port had been evicted, offseting an earlier knock to the price caused by confirmation of the inexorable growth in U.S. oil output.
All of the loadings at Libyan oil export port of Zawiya, which exports crude from the 308,000-barrel per day El Sharara field, have bunged due to a strike, a Libyan website told.
Brent crude futures LCOc1 were last up 11 cents on the day at $65.06 a barrel by 1017 GMT went up from a low of $64.67, whereas U.S. West Texas Intermediate (WTI) crude futures CLc1 were up 17 cents at $61.53 a barrel.
U.S. crude production from chief shale formations is likely to rise by 131,000 bpd in April from the preceding month to a record 6.95 million bpd, the U.S. Energy Information Administration (EIA) said in a monthly report delivered on Monday.
Stephen Innes, head of trading for Asia/Pacific at futures brokerage OANDA in Singapore said, “Oil prices moved lower … after (the) Energy Information Administration published a report that crude production from seven major U.S. shale plays is expected to see a climb,”.
That expected increase would top the 105,000 bpd climb in March from the previous month, to what was then expected to be a record high of 6.82 million bpd, the EIA said.