Oil prices edged lower on Wednesday as the Energy Information Administration released a report explaining that US Stocks has risen unexpectedly by 2.3 million barrels last week. Furthermore, Libya’s National Oil Corporation (NOC) who’s already doubled output production to 600,000 barrels/day (bpd), confirmed on Tuesday that Sharara and El-Feel fields pipelines had reopened and that NOC was planning a boost of production over the upcoming months that will add 270,000 bpd to national production. Knowing that earlier on Wednesday, the corporation had announced a reached output of 58,000 bpd for Sharara oilfield pipeline. Nonetheless Jonathan Barratt, chief investment officer at Sydney’s Ayers Alliance, said Lybia had the capacity to ramp up production up to 1.2 million bpd.
But a weaker dollar and an optimism that oil producers would abide by an agreement made earlier this month to cut output by almost 1.8 million bpd from Jan.1 limited the drop in prices.
Brent futures for February delivery fell on Thursday morning 4 cents to $54.42 a barrel by 6:42 AM (GMT), having previously finished 89 cents lower. US West Texas Intermediate crude dropped 5 cents to $52.44 a barrel, after dropping Wednesday by 1.5 percent, its first slide this week.