Oil Prices Reverse Losses

Oil Prices Reverse Losses
Oil Prices Reverse Losses

Oil prices reversed losses and edged up on Monday, as concerns of tight supply amid lower OPEC output, unrest in Libya and sanctions on Russia outweighed fears of a global recession.
Brent crude futures for September rose 55 cents, or 0.5%, to $112.18 a barrel, after falling over $1 in early trade, reported.
US West Texas Intermediate crude futures for August delivery gained 44 cents, or 0.4%, to $108.87 a barrel, after also falling $1 earlier, a Reuters survey showed. 
"Oil fundamentals remain supportive. Strong time spreads point to a tight market and clearly OPEC is still struggling to hit its agreed output levels," said Warren Patterson, the head of commodity research at ING.
"The group appears to be battling to maintain current output levels, with production falling over June."
Output from the 10 members of OPEC in June fell 100,000 barrels per day to 28.52 million bpd, off their pledged increase of about 275,000 bpd. 
Declines in Nigeria and Libya offset increases by Saudi Arabia and other large producers, and Libya faces further supply disruption due to escalating political unrest, making the likelihood of OPEC meeting its newly increased production quotas even more unlikely, said ANZ Research analysts in a note.

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