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Crude falls as Libya supply concerns fade

Published 07/02/2014, 12:06 PM
Updated 07/02/2014, 12:07 PM
Crude falls on news Libyan ports may reopen
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Investing.com - Crude futures fell on Wednesday on news Libyan rebels may reopen two oil ports, which would increase global supply.

In the New York Mercantile Exchange, West Texas Intermediate crude oil for delivery in August traded at $104.64 a barrel during U.S. trading, down 0.67%. New York-traded oil futures hit a session low of $104.58 a barrel and a high of $105.52 a barrel.

The August contract settled down 0.03% at $105.34 a barrel on Tuesday.

Nymex oil futures were likely to find support at $101.89 a barrel, the low from June 9, and resistance at $106.09 a barrel, Tuesday's high.

Libyan rebels who have seized eastern oil ports have agreed to reopen terminals in Es Sider and Ras Lanuf, which should add 500,000 barrels per day of crude back into the global energy market.

The news sent futures falling despite bullish supply data out of the U.S.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories declined by 3.2 million barrels in the week ended June 27, compared to expectations for a decline of 2.3 million barrels.

Total U.S. crude oil inventories stood at 384.9 million barrels as of last week.

The report also showed that total motor gasoline inventories decreased by 1.2 million barrels, compared to forecasts for a gain of 0.4 million barrels, while distillate stockpiles rose by 1.0 million barrels, above expectations for an increase of 0.8 million barrels.

Upbeat U.S. jobs data failed the bring up prices as well.

Payroll processor ADP reported earlier in its nonfarm payrolls report showed that the U.S private sector added 281,000 jobs last month, beating expectations for an increase of 200,000 and the highest since November 2012.

The upbeat data eased concerns that headwinds may be slowing U.S. recovery.

Elsewhere, on the ICE Futures Exchange in London, Brent oil futures for August delivery were down 0.79% and trading at US$111.41 a barrel, while the spread between the Brent and U.S. crude contracts stood at US$6.77 a barrel.

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