Oil prices extended losses last week because of oil stock pile and woldwide demand. Prices fall more after news that two key oilfields in Libya had restarted.
Libya's Sharara oilfield, with a production capacity of almost 300,000 barrels per day (bpd), has restarted after the end of protests that had blocked pipelines there, according to a Libyan oil source. The source said El Feel oilfield, with a capacity of about 90,000 bpd, had also restarted.
North Sea oil is flooding into Asia like never before thanks to the most competitive crude prices in seven years. North Sea tankers sailing to Asia soared to a record this month, hauling at least 540,000 barrels a day. OPEC, along with Russia and other non-OPEC producers, pledged to cut output by 1.8 million barrels per day (bpd) in the first half of 2017.That deal expires at the end of June.
Global inventories rose in the first quarter
OPEC Secretary, General Mohammad Barkindo, said that stocks needed to fall further. Saudi Energy Minister Khalid al-Falih said on Friday that it was important to agree on an extension of a global oil cuts deal into the second half of the year.
Despite the supply cuts, global inventories rose in the first quarter, according to the International Energy Agency. Key highlights from the EIA's report's summary of weekly petroleum data for the week ending April 21, 2017:
• U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 3.6 million barrels from the previous week.
• At 528.7 million barrels, U.S. crude oil inventories are near the upper limit of the average range for this time of year
• U.S. crude oil refinery inputs averaged 17.3 million barrels per day during the week ending April 21, 2017
• U.S. crude oil imports averaged over 8.9 million barrels per day last week, up by 1.1 million barrels per day from the previous week
• Refineries operated at 94.1% of their operable capacity last week
• Gasoline production decreased last week, averaging over 9.7 million barrels per day
• Distillate fuel production decreased last week, averaging about 5.1 million barrels per day