Crude Futures Remain Close to Two Month Low as Over Supply Concerns Intensify
Oil futures are still dropping. On Friday, they ended the session at two month's lowest level as oversupply worries intensified following a data, revealing a rise in U.S. oil rig counts last week. It was a four weekly rise in a row. A strong dollar also played a major role in keeping prices low.
On Sunday, London Brent crude for delivery in September slipped to $45.65 a barrel after settling 51 cents down on Friday. On Friday, the benchmark for oil futures touched $45.17, which is the lowest noted since May 11.
NYMEX crude, or the New York Mercantile Exchange is a commodity futures exchange for September delivery was 5 cents down at $44.14 per barrel. On Friday, it closed 56 cents down.
Libya, the north African country which was hoping to perk up its crude exports have faced a snag after the head of the National Oil Corporation (NOC) objected to a deal agreed on by the government and local guards to revive key ports. Political complications have damaged the flow of oil to the major ports.
Coupled with political conflicts, labor disputes and security threats have crippled the country's oil output in the last three years. The OPEC member's oil output has been irregular with dropping to less than one fourth of its product in 2011 noted at 1.6 million barrels per day, or more.