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Oil drops below $97 on abundant supplies

The price of Brent crude declined below $97 a barrel today amid abundant supplies and weak European economic data, which outweighed increasing political tensions in the Middle East.

 

Reuters reported that Brent for November delivery dropped one cent to $96.84 a barrel while US crude increased 29 cents to settle at $91.85 a barrel.

 

A survey has found that euro zone business activity picked up at slow pace in September.

 

Oil prices are currently under pressure and US manufacturing activity along with tensions in the Middle East have failed to rebound the market.

 

Iraq and Nigeria exports are growing while production in Libya has increased.

 

Libya is now producing 800,000 barrels per day (bpd), up approximately 14% from Sunday, as the El Sharara oil field restarted production.

 

According to shipping data for the first 23 days of September tracked by Reuters, Iraq's southern terminals have exported an average 2.58 million bpd; an increase from August's average of 2.38 million.

 

Oil exports in Nigeria are expected to hit a 14-month high in November.

 

Meanwhile, investors are awaiting weekly oil inventories data from the Energy Information Administration, which is due to be unveiled later today.

 

Data from the industry group, American Petroleum Institute, revealed that crude inventories declined by 6.5 million barrels in the week to 19 September.

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