Crude oil prices saw their biggest drop in nearly 14 months at the NYMEX with oil prices for most active February expiry closed nearly 3% lower yesterday. A slew of positive economic numbers from the US were unable to press-in any kind of optimism into the commodity which was weighed by rise in US Dollar amidst speculation that the US Fed would continue with its monetary tapering. Additional pressure seeped-in by the fact that Libya is planning to open one of its key oil fields over the next two weeks which if happens would nearly double the supply form the country as compared to current levels. By the end of the trading session on Thursday, WTI oil was down around $3 per barrel to close at $95.44 a barrel and marking its biggest single session drop since Nov, 2012.
The other benchmark, Brent too slipped and moved down to near $109 a barrel tracking cues from Libya and Iran. In Libya, oil output still hovers around 250,000 barrels per day (BPD), sharply lower from the near 1.5 BPD during the first half of 2013 as ports in the eastern part of the country remain shut. Recently, its National Oil Corp (NOC) said it plans to restart the El Sharara oilfield and hopes to advance country’s output to near 600,000 BPD after protesters agreed to suspend a strike that has blocked the field since the end of October.