Oil rises on suspended Libryan loadings

Oil rises on suspended Libryan loadings

Crude oil prices slipped into negative territory early Monday, following big gains last week, as broader worldwide trade concerns spill into commodities.

Brent crude futures were up 41 cents at $65.36 a barrel by 1415 GMT, off an earlier low of $64.35, while U.S. West Texas Intermediate (WTI) crude futures were up 34 cents at $61.70 a barrel.

Crude oil futures are trading lower early Tuesday, extending its losses from the previous session.

"Libyan oil loadings have been suspended, that's why the market is rallying at the moment", PVM Oil Associates analyst Tamas Varga said.

U.S. crude oil production C-OUT-T-EIA soared past 10 million barrels per day (bpd) in late 2017, overtaking output by top exporter Saudi Arabia.

In oil markets, US energy companies, last week, cut oil rigs for the first time in nearly two months, RIG-OL-USA-BHI, with drillers cutting back four rigs, to 796, Baker Hughes (GE.N) energy services firm said on Friday. The production from large shale formations is expected to increase by 131,000 barrels per day in April compared to March to a record 6.95 million barrels per day, shows the analyze of the International Energy Agency. However, the US has simply filled the supply gap created by OPEC producers by ramping up production.

"The average monthly increase [in shale output] in the eight months since September is 155,000 bpd".

OPEC has been reducing output by around 1.2 million barrels per day (bpd) since January 2017. "Thus, Opec has no scope to expand production from its current level".

Brent crude, which is the worldwide benchmark of crude oil, had opened 2018 at $64.73.

"Last week's action was dictated by broader markets - movement in the dollar and the potential impact of steel tariffs", Matthew Smith, the director of commodity research at ClipperData, told UPI.

Friday's strong US payroll data, which showed a hefty 313,000 rise in jobs but tempered growth in hourly earnings, supported Treasuries in Monday trade.

As American output continues to expand, more exports will sail to Asia, the traditional bastion of Middle East producers.

"Secretary of Commerce Wilbur Ross will be speaking with representatives of the European Union about eliminating the large tariffs and barriers they use against the United States of America", he stated.