Zawiya Oil refinery in occupied Libya. Since the counter-revolution against Gaddafi and the Jamahiriya the country's oil production has declined by two-thirds., a photo by Pan-African News Wire File Photos on Flickr.
Oil falls as output increases in Libya, Texas
Sep 24, 2013 01:34AM GMT
Investing.com - Oil futures traded slightly lower during Tuesday’s Asian session as some of Libya’s previously lost production came back online and on news of increased output at the Eagle Ford Shale in South Texas.
On the New York Mercantile Exchange, light, sweet crude futures for November delivery fell 0.27% to USD103.31 per barrel in Asian trading Tuesday. The November contract settled lower by 1.11% at USD103.59 per barrel on Monday.
Oil has declined in sharply in recent weeks has tensions in Syria have ebbed. In another sign a more docile near-term environment in the usually volatile Middle East, Iran has reportedly freed 80 political prisoners before President Hassan Rohani’s upcoming trip to the United Nations. Iran is the third-largest OPEC producer.
Over the weekend, it was reported that Libyan output is on the rise after protesters reopened access to facilities late last week sent oil prices falling on Monday. Libyan production is expected to return to about 700,000 barrels per day in the coming weeks, well above recent levels of 243,000 barrels.
Still, at 700,000 barrels per day, Libya’s oil output is roughly half what it was in early 2011 before the Arab Spring protests swept the Middle East. OPEC member Libya is home to Africa’s largest oil reserves.
Elsewhere, the Texas Railroad Commission said the fields that comprise the Eagle Ford Shale are producing a combined 569,191 barrels per day, a 36% increase from last year. May output was revised to 656,853 barrels a day from the preliminary report of 617,884, according to Bloomberg. Eagle Ford is one of the largest oilfields in the U.S.
Meanwhile, Brent crude futures for November delivery inched down 0.02% to USD107.98 per barrel on the ICE Futures Exchange.