Oil edges up, returning
supply caps gains
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[September 15, 2016]
By Mark Tay and Dmitry Zhdannikov
SINGAPORE/LONDON (Reuters) - Oil prices
edged up on Thursday after two consecutive days of losses, with
gains capped by returning supplies from Nigeria and Libya.
Brent crude futures were trading at $46.23 per barrel at 1012
GMT, up 38 cents, from the last settlement. U.S. West Texas
Intermediate (WTI) futures were up 25 cents, or 0.6 percent, at
$43.83 a barrel.
Crude prices fell about 3 percent for a second straight day on
Wednesday following a 4.6 million barrel build in U.S. distillates
inventories. It was the biggest weekly build since January and put
distillate stocks at six-year seasonal highs.
However, U.S. crude inventories dropped by 559,000 barrels in the
week to Sept. 9, defying analysts expectations of a crude build of
3.8 million barrels. [EIA/S]
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"It's good news at this time of the year to see a draw like that (in
crude stocks)," said Ric Spooner, chief market analyst for CMC
Markets. "But the market seems to be more concerned at the moment
about the possibility of a sharp increase of the supply from Libya."
Crude prices have fallen by around 8 percent in the last five
trading sessions, including on expectations of a return of crude
supplies from Libya and Nigeria, hit by months of unrest.
Libya's National Oil Corporation is lifting force majeure at three
ports and exports will resume immediately at two of them, it said on
Thursday.
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![](../images/091516pics/busine19.jpg)
A worker walks past oil pipes at a refinery in Wuhan, Hubei province
March 23, 2012. REUTERS/Stringer/File Photo
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"Although any damage is reportedly still to be assessed, the reopening of these
ports could have the potential to more than double Libyan crude production...
However, given the track record over the last couple of years, we would not get
too excited about a potential recovery in exports," JBC Energy said in a note.
Expectations that Nigerian crude supplies could also be returning as offers for
October-loading Qua Iboe crude have emerged even as force majeure on it remains
in place.
(Editing by William Hardy)
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