Brent oil falls 4% to Three-month Low as
Supply Outage Concerns Ease
July 17, 2018
Oil prices fell more than 4% on Monday, with
Brent reaching a three-month low, as Libyan ports reopened and
traders eyed potential supply increases by Russia and other
producers.
Brent crude futures fell by US $3.49 to
settle at US $71.84 a barrel, a 4.63% loss, while U.S. West
Texas Intermediate (WTI) crude futures fell by US $2.95 to
settle at US $68.06 a barrel, a 4.15% loss.
Brent’s dive pushed it to a session low of US
$71.52 during the session, its lowest since mid-April.
Falling prices offset gains late last week
caused by supply outages in Libya, a labor dispute in Norway and
unrest in Iraq.
Russian Energy Minister Alexander Novak told
reporters on Friday that Russia and other oil producers could
raise output by 1 million barrels per day or more if shortages
hit the market.
Also weighing on futures were reports the
United States could tap its Strategic Petroleum Reserve, which
would add supply to the market.
Concerns over China’s second-quarter GDP
growth also was negative for prices during Monday’s session. The
country’s economy expanded at a slower pace as Beijing’s efforts
to contain debt hurt activity, while June factory output growth
weakened to a two-year low in a worrying sign for investment and
exporters as a trade war with the United States intensified.
(Reuters)
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