Brent crude dropped to the lowest level
in almost three weeks as OPEC production climbed andLibya said an export terminal
would reopen. The European benchmark’s premium to West Texas Intermediate oil
narrowed.
OPEC crude production increased
in May for the first time in three months, a Bloomberg survey showed. Libya’s
Hariga port is set to resume operating within two days after authorities
approved salary payments to Petroleum Facilities Guard members who are
preventing loadings, according to the country’s National Oil Corp. Futures
gained earlier after a report showed China’s Purchasing
Managers’ Index advanced.
“Rising OPEC
production will help keep a lid on prices,” said John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund
that focuses on energy. “As things right themselves in places like Libya, the
market will come under further pressure.”
Brent for July
settlement fell 67 cents, or 0.6 percent, to $108.74 a barrel on the
London-based ICE Futures Europe exchange at 1:07 p.m. in New York. Futures
touched $108.71, the lowest intraday price since May 13. The volume of all
futures traded was 2 percent below the 100-day average for the time of day.
WTI for July
delivery slipped 57 cents, or 0.6 percent, to $102.14 on the New York
Mercantile Exchange. Volume was 33 percent lower
than the 100-day average. Prices are up 3.8 percent this year. The U.S.
benchmark crude traded at a $6.60 discount to Brent, down from $6.70 on May 30.
Brent, which is
used to price more than half of the world’s oil, is typically more sensitive to
changes to the global supply-and-demand balance.
Culled from bloomberg.com
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