Brent‘s value could increase today after a disappointing performance in the previous session due to Libyan developments, when it posted its biggest daily percentage drop in six months.
According to Reuters, Brent crude increased by 16 cents to $107.94 a barrel, while US crude dropped by 13 cents at $95.31.
Oil prices experienced volatility after Libya’s National Oil Corp (Noc) said on Thursday that it plans to resume the El Sharara oil field and hopes to resume output within days, after protesters agreed to suspend a strike that has blocked the field since the end of October.
Crude losses deepened in the earlier session after a report by Genscape revealed a one million barrel rise in stockpiles at Cushing, Oklahoma.
Prices were undermined by expectations of a further dip in fuel demand as a winter storm bore down on the north-eastern US.
US motor fuel prices contributed to crude’s losses, as a powerful storm bringing heavy snow and Arctic cold to the densely populated US north-east is likely force motorists off the road.
Crude came under pressure due to a decrease in US jobless claims, while an increase in manufacturing activity strengthened the dollar on forecasts that the US Federal Reserve will continue to go slow with its stimulus programme.
Traders are watching developments in Libya as its oil output is still fewer than 250,000 barrels per day (bpd), down from 1.4 million bpd in July.
Image: Libya wants to restart the El Sharara oil field. Photo courtesy of freedigitalphotos.net / Sura Nualpradid.