ISLAMABAD
Crude oil prices edged more than 1 percent lower on Monday after major Libyan oil fields resumed production over the weekend following a brief shutdown, while China reported second-quarter economic growth below expectations.
As of 1035 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, shed $1.35 (-1.69 percent) to reach $78.52 a barrel. The West Texas Intermediate (WTI), the main oil benchmark for North America, went down by $1.28 (-1.70 percent) to $74.14 a barrel.
However, the price of Russian Sokol increased by $1.1 (+1.55 percent) to $71.96. Arab Light prices witnessed an increase of $1.06 (+1.28 percent) to reach $83.95 a barrel. Following suit, the price for Opec Basket increased by $0.90 (+1.12 percent) to $81.53. The OPEC Reference Basket of Crudes (ORB) is made up of Saharan Blend, Girassol, Djeno, Zafiro, Rabi Light, Iran Heavy, Basra Light, Kuwait Export, Es Sider, Bonny Light, Arab Light, Murban and Merey.
Underwhelming Chinese GDP data weighed on the oil market again, after the world’s second-largest economy and top crude oil importer reported early on Monday 6.3 percent GDP growth for the second quarter, missing expectations of 7.3 percent growth and slowing quarter-on-quarter.
GDP in the second quarter rose by just 0.8 percent compared to the first quarter, after 2.2 percent quarterly growth in the first quarter. The economic growth miss from China added to the return to production of large Libyan oilfields to weigh on oil prices on Monday.
On the other hand, Libya’s largest oilfield, Sharara, was fully halted amid protests on Friday last as tensions in the restive African OPEC producer returned. The El Feel oilfield close to Sharara was also affected and was also stopped.
Combined, the Sharara and El Feel oil fields in southwestern Libya pumped around 350,000 bpd of crude oil before the stoppage.
The halting of production at the fields was the result of protests by the Al-Zawi tribe over the kidnapping of Faraj Bumatari, a former finance minister.
Bumatari has been released, tribal leader Al-Senussi Al-ahlaiq told Reuters, which led to the resumption of production at Sharara and El Feel. Libya lost 340,000 barrels in production due to the closures, Oil Minister Mohamed Aoun said on the weekend. The oil ministry warned that Libya would lose market share due to the on-and-off supply.
