Crude prices remain steady due to continued disruptions in oil supply from Libya
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Crude prices remain steady due to continued disruptions in oil supply from Libya

29 Mar 2017

Oil prices have remained stable after marginal improvement in the last two days as armed conflict at Libya continues to disrupt its production and supplies.

Oil prices have remained stable after marginal improvement in the last two days as armed conflict at Libya continues to disrupt its production and supplies.

Brent crude oil LCOc1 remained unchanged at $52.42 a barrel, while US light crude oil CLc1 grew 5 cents to be traded at $49.56 per barrel, reported Reuters.

A day earlier, both these oil benchmarks climbed more than $1 per barrel to touch their highest price in the last two weeks.

As armed protesters block the Sharara and Wafa oilfields in Libya, oil production in the country has fallen by more than 250,000bpd this week.

This significant reduction in Libyan oil output along with the ongoing output-cut by OPEC countries tightened global oil supply and improved its prices.

"As armed protesters block the Sharara and Wafa oilfields in Libya, oil production in the country has fallen by more than 250,000bpd this week."

A survey conducted by this news agency showed that combined output by the OPEC countries reduced for three consecutive months in March and the members have now complied with nearly 95% of their commitments under the output-cut deal.

The impact of this production curb was largely ineffective due to rising US production during the same time.

The Energy Information Administration (EIA) stated that US crude stocks increased by 867,000 barrels to touch a record of nearly 534 million barrels in the last week.

Currently, investors are awaiting as OPEC may decide to extend the production cut beyond June this year.

Along with the OPEC members, multiple non-OPEC oil exporting countries including Russia also pledged to reduce their output. However, the compliance level among the non-OPEC nations has been limited.