Oil fell for a second day as operations in the Gulf of Mexico in the United States began to resume after Hurricane Delta and Libya took a major step toward reopening its largest field.
Futures contracts in New York fell below $ 40 a barrel. Crude explorers and tug operators got back to work on Saturday afterDelta, which had shut down about 92% of oil production, made landfall in the form of a hurricane.The National Oil Corp. of Libya has lifted force majeure on the country’s largest field which will reach its daily capacity of nearly 300,000 barrels in 10 days, a person familiar with the situation said.
In addition to the United States and Libya, a strike in Norway was called off on Friday, which added bearish news on the supply. All of this comes as the OPEC + alliance considers whether or not to pursue a plan to restore more production in January. With cases of coronavirusaccelerating in many countries, the group faces adifficult decision at its next political meeting from November 30 to December 30. 1.
“Potentially bullish developments on the supply side have calmed down,” said Harry Tchilinguirian, oil strategist at BNP Paribas SA. “Libya has taken a big step forward in restoring its oil production with the El Sharara field to resume production.”
In the latest sign from refiners struggling to keep up with falling demand, Italian company Saras SpA has said it will lay off all of its workforce. The company said its plant in Sardinia will operate efficiently atminimum rate required.
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Iraq expects crude prices to hold between $ 41 and $ 42 a barrel this year before climbing to $ 45 in the first quarter of 2021, state newspaper Al-Sabah reported, citing an interview. with the Minister of Oil Ihsan Abdul Jabbar. The minister reaffirmed that Iraq, OPEC’s second-largest oil producer, will continue to comply with the OPEC + pact to reduce production.
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– With the help of James Thornhill