Libyan Production Recovery Continues to Press Crude Oil Prices in Asian Markets
By : Abraham Sihombing And Aldo Bella Putra | Tuesday, August 08 2017 - 15:16 IWST
INDUSTRY.co.id - Tokyo - West Texas Intermediate crude oil futures fell 0.3 percent, or about 13 cents, to $ 49.26 a barrel in early Asian trading session on Tuesday (08/08/2017). Meanwhile, Brent crude oil prices fell 0.3% or 18 cents to US $ 52.19 per barrel.
The fall in crude oil prices was caused by an increase in Libyan crude oil production in line with the recovery of production in the country's largest oilfield as well as continuing doubts about the decline in crude oil production of nations Oil producers incorporated in the Organization of Petroleum Exporting Countries (OPEC).
According to Libya's National Oil Corporation (NOC), oil production from the Sharara Libya field returned to normal after a brief disruption when armed protesters broke into the control room in the coastal city of Zawiya. The oil field produces 270,000 barrels of oil per day (bpd). The volume of production reached about 25% of total Libyan oil producers which in June reached 1 million bpd.
Libya is freed from policies to reduce global production and boost oil prices led by OPEC and other major producers such as Russia. The restoration of production from the North African country is considered to complicate OPEC's efforts to curb supplies, raising doubts about the effectiveness of production cuts.
Officials from OPEC and non-OPEC technical committees met in Abu Dhabi for two days until Tuesday to discuss ways to improve compliance with the deal to reduce production by around 1.8 million bpd.
On the other hand, oil production in the United States remains high, although Baker Hughes' data released Friday showed a reduction in one drill rig in the week ending August 4. (Abraham Sihombing)