Oil prices slipped today on expectations that disruptions from OPEC member Libya could be short-lived, which increased fears about crude regarding supplies.
Brent crude dropped by 26 cents to hit $109.60 a barrel, while US crude was down by eight cents to settle at $96.69, reported Reuters.
Oil prices started dropping after news from trading sources said that Libya’s Mellitah terminal and Hariga port would soon resume exports and production from Sharara oil field, which were shut following strikes and protests by militias and minorities.
Libyan Prime Minister Ali Zeidan said that oil exports from the 110,000 bpd Hariga port would resume on Sunday or Monday.
Libya, which produces around 250,000-300,000bpd of crude, uses 100,000bpd for domestic consumption and the rest for export.
Brent’s value went up after a fall in exports from the OPEC producer to around 90,000 barrels per day (bpd) from the two offshore oil platforms, Al Jurf and Bouri, or less than ten percent of its 1.25 million bpd capacity.
The US Energy Information Administration data revealed that the oil stockpile at Cushing, Oklahoma, increased by more than two million barrels last week, the largest inventory since December 2012.
The US oil, which touched a four-month low of $95.95 last week, has regained some ground on expectations demand would pick up as its refineries emerge from their maintenance season.
Image: Oil prices slip after export resumption news from Libya. Photo courtesy of freedigitalphotos.net.