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Brent crude’s value increased today after reports of a sharp drop in exports from Libya, which overshadowed greater than expected US oil inventories.

Brent crude increased by 15 cents to $109.16 a barrel after registering a fall of 60 cents on Tuesday, while US crude was trading 45 cents lower at $97.75, according to Reuters.

Oil prices slipped in the early session following a statement from the Libyan Prime Minister, which revealed that oil exports from the eastern Hariga port holding 110,000bpd capacity will resume after one week, following a two-month shutdown due to strikes and protests.

Brent value rose on Tuesday as Libya’s crude oil exports dropped by ten percent of capacity, or 90,000 barrels per day, compared with a capacity of more than 1.25 million bpd, extending the worst disruption in Libya’s oil industry since the 2011 civil war.

Investors are keenly watching the US Federal Reserve policy meeting, which is set to end later in the day.

Expectations of traders are currently on the US central bank economic stimulus programme, while mixed performance of US economy has strengthened expectations that the US will continue its $85bn of monthly bond purchases until March.

American Petroleum Institute data reveled on Tuesday that weighing on US futures, US crude inventories increased by 5.9 million barrels in the week to 25 October.

Investors will also keep an eye on the US Energy Information Administration data, which is scheduled to be released on Wednesday with its own oil inventories statistics.


Image: Oil prices decreased following hopes of a resumption in Libyan exports. Photo courtesy of freedigitalphotos.net.

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