20 Dec 2016
Benchmark Brent crude futures settled 28 cents lower at US54.93 a barrel. US West Texas Intermediate (WTI) crude rose 22 cents to settle at US52.12 a barrel.
"US output looks likely to rise, which will offset a significant chunk of the planned OPEC production cuts, particularly since there is no anticipation of strong compliance," Jim Ritterbusch, president of Chicago-based energy consultancy Ritterbusch & Associates, was quoted as saying by Reuters on Tuesday (20/12/2016).
Ritterbusch said the market would likely be surprised by 60 percent OPEC compliance in the first quarter, as a response to US shale. Traders noted that delayed Libyan crude loadings also supported prices earlier in the session.
On Saturday, a group of guards protecting oil infrastructure in Libya said they had lifted a blockade on a key pipeline leading from the Sharara and El feel oilfields. But a separate group has blocked the restart of production at the El Feel oilfield.
Meanwhile, the US dollar firmed nearly 0.1 percent on Monday, making oil more expensive for holders of other currencies. Still, some analysts expected prices to rise early in 2017 due to a deal by OPEC and other producers to cut output by almost 1.8 million barrels per day
| Author | : Estu Suryowati |
| Editor | : Bambang Priyo Jatmiko |
| Source | : Reuters, |
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