Brent crude oil futures fell amid confidence oil-rich Libya will resume its high level of exports. West Texas Intermediate crude oil futures endured a ninth consecutive day of losses, marking their lengthiest drop in about five years.
Economists and analysts polled by the news source said supplies in the U.S. last dropped by 2.5 million barrels. An arm of the U.S. Department of Energy is slated to release official data on Thursday.
"The supply risks that have been supporting oil prices for months are continuing to abate," states a Wednesday report authored by analyst Carsten Fritsch with Commerzbank AG in Frankfurt, according to Bloomberg. "Oil prices are continuing on their downward trajectory."
Libyan production to grow, official says
The oil-rich North African nation is slated to slowly upgrade shipments of the energy commodity as a method of complying with the market, Governor Samir Kamal told reporters. He is Libya's representative to the Organization of the Petroleum Exporting Countries.
Libya has re-assumed jurisdiction over oil ports that previously were under the control of rebel forces.
Two ports – Es Sider and Ras Lanuf – hold an estimated 7,5 million barrels of the energy commodity, according to Ibrahim Al-Awami, the oil ministry measurement director of Libya.
During ongoing strife and uprisings, the nation's generation of oil fell enough to the extent that Libya was the smallest producer of OPEC nations.
"After the stocks have been lifted at the ports we should see Libya's crude oil production rising," states a Wednesday email authored by managing director Olivier Jakob with consultancy Petromatrix GmbH in Zug, Switzerland, according to Bloomberg. "The crude oil physical market in the Atlantic Basin was already long."
U.S. forecast to increase production next year
The production of crude oil by the U.S. next year will touch its top level since the early 1970s, USA Today reports. Citing projections by the U.S. Energy Information Administration, the news source noted Iraqi production will remain stable while the nation works to quash militant uprisings.
Two states in particular are the main driver for the increase, according to the analytical arm of the federal agency.
"Texas and North Dakota now account for almost half of total U.S. oil production," according to the agency's projection. "The conflict in Iraq is expected to limit previously forecasted growth in oil exports from that country."
Strong production also will derive from Canada, whose economic life and times is based on the export of its native commodities. The energy commodity is the nation's top export. China's consumption of oil will remain strong.
Saudi Arabia boosts production
OPEC's top producer of the energy commodity remained strong last month, according to Reuters.
Saudi Arabia generated 9.78 million barrels per day of the energy commodity in June, representing an upward tick from the month prior. In May, the Middle Eastern country produced 9.705 million barrels per day.
In addition to being OPEC's top producer, Saudi Arabia also is the world's largest exporter of the energy commodity. The country's production of oil typically rises as the summer months approach as part of an effort to comply with stronger demand for electric demand.
Despite Saudi Arabia's advance, OPEC's production last month dropped after having touched a three-month high in May, according to projections issued by Reuters. Part of those losses are linked with the ongoing fighting in Iraq, which shuttered the country's biggest producer of oil.
OPEC supplies average roughly 29.93 million barrels per day, which represents a reduction from 30 million barrels per day in May, according to Reuters.
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