Crude Markets Settle Lower as Libya Plans to Increase Production

by Nick Bond, KPI Bridge Oil
Monday August 5, 2013

Crude markets settled lower today, with most pressure coming from news that Libya plans to increase production next month.

The recent labour disputes that have limited Libya's exports and production capabilities have eased, allowing another oil port to open and let supply into the market.

More ports are anticipated to open and should continue to keep pressure on prices.

Markets began inching back up later this morning, however, as the Institute for Supply Management reported that its non-manufacturing purchasing managers' index rose to 56.0 in July, up from 52.2 in June.

The better-than-expected reading pointed to a stronger U.S. economy and signalled to investors that crude demand could increase.

Some additional support earlier in the session also came earlier from China, as reports showed that its official non-manufacturing purchasing managers' index also rose last month.

Investors are now looking to this week's EIA report to get a look at the demand picture in the United States. 

WTI fell $0.38 to settle at $106.56/bbl and Brent shed $0.25, settling at $108.70/bbl. Bunker prices were stable in the primary ports.

About KPI Bridge Oil

KPI Bridge Oil is one of the world's leading international bunker broking and trading firms. With a network of offices that covers every major time zone, we have an in-depth knowledge of ports and bunker markets around the world. Our access to real-time market information and long-established credit lines with suppliers means we use our buying power in the right place and at the right time. All this ensures our customers enjoy competitive prices - and on favourable terms.

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