Oil Eases Below $49

Oil Eases Below $49Oil Eases Below $49

Oil slipped from a six-month high to trade below $49 per barrel on Tuesday after a deal between Libyan factions brought higher output a step closer, although outages in Nigeria and Canada lent support. The Libyan factions agreed in principle at talks in Vienna to have one oil organization, Reuters reported. Most of the OPEC member’s output is offline because of conflict. Traders were also eyeing the restart soon of some of the shut Nigerian output.

Brent crude traded at a six-month high of $49.47 intra-day before slipping 17 cents to settle at $48.80. US crude was up 11 cents at $47.83, having reached $48.42, its highest since October. Beside unplanned outages, supply from non-OPEC countries is expected by the International Energy Agency and other forecasters to fall this year and output in some OPEC nations such as Venezuela is suffering because of a cash crunch.

“Globally, there are still a lot of supply disruptions and this comes on top of natural declines,” said Olivier Jakob, oil analyst at Petromatrix. “It does bring forward the expected rebalancing in the second half.”