The price of crude was slightly down by 1 percent last Thursday as two main oilfields in Libya resumed to pumping more crude even though the market is already swollen.
According to a Libyan local official, the 300,000 barrels per day (bpd) of Sharara oilfield in Libya and El Feel oilfield’s 90,000 bpd have resumed to pump crude after the protests ends that had obstructed the pipelines in the place.
The crude output in Libya was 491,000 bpd; however the OPEC nation was aiming 800,000 bpd and 1 to 1.1 million bpd before August. The news regarding Libya restarting had dragged Brent crude below its 200-day moving average. The international benchmark fell more than 9 percent or 19 cents to settle at $51.63 per barrel.
U.S. light crude finished the session lower by 1.3 percent, or 65 cents at $48.98 per barrel. Meanwhile the gasoline futures in the country were also on the negative territory as it dropped to its lowest since eight years ago. It plunged by 3 percent at $1.5458 per gallon. This is after the stockpiles rose to its highest level and the demands are still poor; gasoline crack spreads are also responsible.
Some analysts are indicating that refiners risk is disintegrating the surplus in fuel by operating their materials so hard throughout mild gasoline demand. Gas stockpiles could depress the demand for feedstock crude if it continues to heighten until the end of summer driving season.
The Organization of the Petroleum Exporting Countries along with Russia is talking about prolonging a deal to reduce output by 1.8 million bpd for six months.