Oil edges lower after big drop on Libyan supplies

 

Associated Press

The price of oil edged down toward $100 a barrel on Monday after its biggest one-day drop since April following growing expectations of more supplies from Libya.

By early afternoon in Europe, benchmark U.S. crude for August delivery was down 28 cents at $100.55 a barrel in electronic trading on the New York Mercantile Exchange. The Nymex contract fell 3.1 percent last week and is down 4.3 percent so far in July. Brent crude, a benchmark for international oils, was up 30 cents to $106.96 on the ICE Futures exchange in London.

Oil prices shot up in June to a 10-month high over concerns violence in Iraq might disrupt supplies from OPECs second-largest exporter. Prices then drifted lower over the past two weeks as the advance by Iraqi insurgents stalled and oil exports were not threatened.

Friday's decline of $2.10, or about 2 percent, in the U.S. price was the biggest one-day loss since oil fell 2.2 percent on April 22.

Some analysts said oil prices could reverse the recent steep decline as the situation in Libya remained uncertain and amid uncertainties over a deal between Western powers and Iran about its nuclear program.

The International Energy Agency has also lowered its 2014 forecast of global demand due to weaker economic data. It predicted demand would rise 1.5 percent next year to 94.1 million barrels a day.

In other Nymex trading:

— Wholesale gasoline added 1.41 cents to $2.895 a gallon.

— Natural gas shed 0.5 cent to $4.141 per 1,000 cubic feet.

— Heating oil gained 1.41 cents to $2.8875 a gallon.

Read more Breaking News - Business stories from the Miami Herald

Miami Herald

Join the
Discussion

The Miami Herald is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere on the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.

The Miami Herald uses Facebook's commenting system. You need to log in with a Facebook account in order to comment. If you have questions about commenting with your Facebook account, click here.

Have a news tip? You can send it anonymously. Click here to send us your tip - or - consider joining the Public Insight Network and become a source for The Miami Herald and el Nuevo Herald.

Hide Comments

This affects comments on all stories.

Cancel OK

  • Marketplace

Today's Circulars

  • Quick Job Search

Enter Keyword(s) Enter City Select a State Select a Category