Crude slips, fails to gain traction as supply abounds
Brent crude oil was flat Monday, with U.S. oil ending at a one month low in choppy trading as reports of restarted production at a Libyan oilfield, which hinted at more supply.
Libya's armed forces warned they would not allow any oil tanker to load at ports seized by protesters. The Libyan Navy had blocked a Maltese-flagged vessel from trying to reach a dock and opened fire as it approached a port, officials said.
Brent crude for February delivery rose over $1 early in the session before paring gains to seesaw near $107, flat on the day. The volatility followed the benchmark's biggest weekly fall in six months after the restart of the El Sharara oilfield following a two-month blockade by protesters.
The restart of the 340,000-barrel-per-day (bpd) field will more than double Libyan crude production, which had fallen to 250,000 bpd from 1.4 million bpd in July. On Monday, Iraq's prime minister urged people in the besieged city of Falluja to drive out al Qaeda-linked insurgents to pre-empt a military offensive that officials said could be launched within days.
U.S. crude futures extended losses for a fifth straight session, with traders citing ample domestic supplies of crude oil. The contract closed down 53 cents in choppy trading at $93.43
For more information on commodities prices, please click here.