Oil extends drop on easing Libyan dispute, demand concerns
Updates prices, adds comments; paragraphs 2,8-9
By Yuka Obayashi and Jeslyn Lerh
SINGAPORE, Sept 4 (Reuters) -Oil prices fell on Wednesday, extending a plunge of more than 4% the previous day, on expectations that a political dispute halting Libyan exports could be resolved and concerns over lower global demand growth.
Brent crude futures for November LCOc1 fell 37 cents, or 0.5%, to $73.38 by 0330 GMT, after the previous session's fall of 4.9%. U.S. West Texas Intermediate crude futures for October CLc1 were down 41 cents, or 0.6%, at $69.93, after dropping 4.4% on Tuesday.
Both contracts fell to their lowest since December on signs of a deal to resolve the political dispute between rival factions in Libya that cut output by about half and curbed exports.
"Selling continued in Asia amid expectations of a potential deal to resolve the dispute in Libya," said Toshitaka Tazawa, an analyst at Fujitomi Securities Co Ltd.
"The market remained under pressure also because of concerns over sluggish fuel demand following weak economic indicators from China and the United States."
Libya's two legislative bodies agreed on Tuesday to jointly appoint a central bank governor, potentially defusing the battle for control of oil revenue that set off the dispute.
Libyan oil exports at major ports were halted on Monday and production cut nationwide. Libya's National Oil Corp (NOC) declared force majeure on its El Feel oilfield from Sept. 2.
"Easing political tension in Libya potentially seeing some supplies return and economic weakness in the world's largest oil consumers, U.S. and China, serve as a confluence of headwinds for oil prices," said Yeap Jun Rong, a market strategist at IG.
"The faster contraction in new orders and production, along with increasing prices, presented in the U.S. manufacturing PMI data seems to be renewing growth fears, which does not offer much reassurance around the oil demand outlook."
Market sentiment weakened after Tuesday's Institute for Supply Management data showing that U.S. manufacturing remained subdued, despite a modest improvement in August from an eight-month low in July.
In China, the world's biggest importer of crude, recent data showed that manufacturing activity sank to a six-month low in August, when growth in new home prices slowed.
Weekly U.S. inventory data has been delayed by Monday's Labor Day holiday. The report from the American Petroleum Institute is due at 4:30 p.m. EDT (2030 GMT) on Wednesday and data from the Energy Information Administration will be published at 11:00 a.m. EDT (1500 GMT) on Thursday.
U.S. crude oil and gasoline stockpiles were expected to have fallen last week, while distillate inventories probably rose, a preliminary Reuters poll showed on Tuesday. EIA/SAPI/S
Reporting by Yuka Obayashi in Tokyo and Jeslyn Lerh in Singapore; Editing by Christian Schmollinger and Clarence Fernandez
Mga Kaugnay na Asset
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
