Oil becomes cheaper on fears of increased production in Libya

© AP Photo / Hasan JamaliДобыча oil. Archival photoOil becomes cheaper on fears of increased production in Libya© AP Photo / Hasan Jamali

World oil prices decline on Wednesday as investors concerned about the increase of production of «black gold» in Libya, according to the auction.

As at 08.12 GMT the cost of the August futures for North sea petroleum mix of mark Brent has decreased on 0,5% — to 51,98 dollars per barrel. The price of July futures for WTI crude oil decreased by 0.6% to 49,36 USD per barrel.

According to traders, the decline in world oil prices was the result of production growth in Libya. The national oil company of Libya National Oil Corp. (NOC) reported an increase in crude oil production by 800 thousand barrels per day. According to the chief market strategist at AxiTrader Greg McCann (Greg McKenna), who leads the Agency Reuters, the data on oil production in Libya probably «took the mind of traders that night.»

In addition, traders remain concerned about whether the deal OPEC and outside the organization States (OPEC+) to reduce production of «black gold» in addressing the issue of global oversupply of oil on the market.

OPEC November 30 in Vienna agreed to cut production by 1.2 million barrels per day from October levels to stabilize oil prices. Eleven non-OPEC countries, 10 Dec agreed to reduce its production a total of 558 thousand barrels, including RF — 300 thousand. The agreement was concluded for the first half of 2017 with possibility of extension. Held on Thursday, may 25, the meeting all the participants of the Vienna agreement agreed to extend the reduction in oil production for another nine months — until the end of the first quarter of 2018.

Market participants also awaited the release of Thursday’s weekly data on oil reserves in the United States. Stocks declined for seven consecutive weeks, however, the volume still remains high.

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Oil becomes cheaper on fears of increased production in LibyaGo to photobacteria oil revenues and other revenues