Crude oil prices decline after Libya restarts production

17 Jul 2023 , 12:08 PM

After Libya began production over the weekend, oil prices fell for a second session on Monday. China, the world’s largest crude importer, is also anticipated to disclose economic statistics showing that its post-pandemic recovery is stalling.

Brent crude futures were down 57 cents, or 0.7%, to $79.30 per barrel, while U.S. West Texas Intermediate crude was down 52 cents, or 0.7%, to $74.90 per barrel.

Prices decreased after both benchmarks last week recorded their third consecutive week of advances and reached their best levels since April, when supply was tightened by the shutdown of Libyan oilfields and Shell’s suspension of the shipment of Nigerian crude.

The Sharara and El Feel oilfields, which have a combined production capacity of 370,000 barrels per day (bpd), two of the three Libyan oilfields that were shut down on Thursday, resumed production on Saturday night, according to four oil engineers and the oil ministry.

The 108 field was still closed. Production was suspended in retaliation for the kidnapping of a former finance minister.

According to news reports, Russia’s oil exports from western ports are expected to decrease by between 100,000 and 200,000 bpd from July levels in an indication that Moscow is following through on its commitment to further production cutbacks in line with OPEC leader Saudi Arabia.

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