Crude prices have fallen after a day of stability, with Libya resuming crude production and drill count increasing in the US.

Benchmark Brent crude oil plummeted by 20 cents to $52.92 a barrel, while US light crude oil also fell by 20 cents to reach $50.04, reported Reuters.

Both oil benchmarks recovered in the previous week expecting that OPEC countries will decide to extend the output-cut deal.

However, oil stock remains high and it may take several months for the OPEC deal to influence global crude prices convincingly.

Currently, OPEC members are producing 1.8 million barrels of oil less to tackle the rising global oil glut. This deal is scheduled to end in June.

"We expect Brent oil prices to rise above $60 a barrel in three months."

The news agency also reported an improvement in Libya's crude output after the state oil company National Oil Corp (NOC) lifted a force majeure on loadings of Sharara oil from the Zawiya terminal.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

UBS analyst Giovanni Staunovo was quoted by Reuters as saying: “We believe the implemented production cuts will trigger a material drawdown in OECD oil inventories and thus higher crude oil prices.

“We expect Brent oil prices to rise above $60 a barrel in three months.”

Earlier Baker Hughes indicated that US oil drillers added rigs for an 11th consecutive week that created further pressure on the oil prices.

Image:  An offshore oil platform. Photo: courtesy of QR9iudjz0/