The price of oil plunged two per cent Friday, the largest one-day drop since April, as Libyan oil appeared poised to return to the market in the face of muted global demand.
Benchmark West Texas Intermediate crude for August delivery fell
Brent crude, a benchmark for international oils used by many U.S. refiners, fell
Oil prices shot up in June to a 10-month high over concerns that violence in
After a slight gain Thursday, the losses accelerated Friday to their biggest drop since falling 2.2 per cent on
Along with more certainty about Iraqi supplies, a large increase in Libyan crude is expected to soon hit the market. Libyan exports have been slowed for nearly a year because of labour strife and other unrest, but recent agreements between the government and local militias may allow exports to surge in the coming weeks. U.S. crude production also continues to rise, adding even more oil to global supplies.
"Contrary to seasonal patterns, the kingdom barely hiked production in June, a sign that demand for its crude may not have significantly increased," the
At the same time, the IEA slightly lowered its 2014 forecast of global oil demand due to weaker than expected economic data in the middle of the year. It predicted demand would rise 1.5 per cent next year, to 94.1 million barrels a day.
In other energy futures trading on the
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