US oil flat, Brent falls on Libya exports

Published on NewsOK Modified: April 28, 2014 at 3:03 pm •  Published: April 28, 2014
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The price of U.S. oil inched slightly higher Monday but global oil fell more than 1 percent on expectations of increased exports from Libya.

U.S. crude for June delivery rose 24 cents to close at $100.84 a barrel in New York. Brent crude, an international benchmark used to price oil used by many U.S. refineries, fell $1.46, or 1.3 percent, to close at $108.12 in London.

Brent fell on news that Libya would soon resume exports from a 70,000 barrel-per-day terminal that had been occupied by rebels. Libya has struggled to deliver steady oil exports in the three years since the ouster of former leader Moammar Gadhafi. Libya's exports are roughly 220,000 barrels a day, down from 1.4 million barrels a day a year ago.

Energy analyst Jim Ritterbusch said in a research note Monday that U.S. and European sanctions against Russia over its involvement in the turmoil in Ukraine appeared to be less strict that oil traders had expected, further pushing oil prices down.

Still, analysts say prices remained higher than they would otherwise be because of fears that sanctions against Russia would disrupt supplies of that country's oil and gas. Global supplies are ample, and demand growth is weak.

"Growth in demand is so far unable to match, let alone outpace, the increasing oil supply," said Fawad Razaqzada, of Forex.com in London.

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