Oil fell on Friday, paring its biggest weekly gain since June, as Libyan military commander Khalifa Haftar said he will allow crude production and exports to resume.
Futures slid 0.7% in New York following the announcement from Haftar, who controls most of eastern Libya and has halted operations and shipments from his territory as part of a campaign against the internationally recognized Tripoli government. The OPEC member is pumping just 80,000 bbls/d, but produced 1.2 million a day last year.
West Texas Intermediate for October delivery fell 26 cents to US$40.71/bbl on the New York Mercantile Exchange as of 8:00 a.m. local time, after climbing two per cent on Thursday. Brent for November settlement slipped 30 cents to US$43.00/bbl on the ICE Futures Europe exchange, after rising 2.6 per cent in the previous session.
Nonetheless, prices remain nine per cent higher this week, buoyed by a show of determination to defend the market on Thursday from Saudi Arabia, the most influential nation in OPEC. The Saudis hinted they’re prepared for new production cuts, and lambasted OPEC+ members that have cheated on production quotas.
“All in all, the strong reiteration of OPEC+’s commitment with its planned supply cuts is welcome news to the bulls in the market,” said Harry Tchilinguirian, head of commodities strategy at BNP Paribas SA.
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