NEW YORK, June 15 — Oil fell for a third day as rising Libyan output added to speculation that unyielding OPEC production will prolong a global glut.
Futures slid as much as 0.5 per cent in New York. Libya, a member of the Organization of Petroleum Exporting Countries, is pumping 500,000 barrels a day, said an unidentified official from National Oil Corp, Libya News Agency reported.
Drillers in the US reduced the number of active rigs for a 27th straight week, data from Baker Hughes Inc. showed Friday.
Oil’s recovery from a six-year low has faltered near US$60 (RM225.471) a barrel amid speculation the global glut will persist as rising prices spur a recovery in production.
OPEC maintained its collective quota of 30 million barrels a day at a June 5 meeting as it sought to defend market share.
West Texas Intermediate for July delivery dropped as much as 29 cents to US$59.67 a barrel in electronic trading on the New York Mercantile Exchange and was at US$59.76 at 9:50am Sydney time.
The contract decreased 81 cents to US$59.96 on Friday. The volume of all futures traded was about 32 per cent below the 100- day average.
Prices have increased 12 per cent this year.
Brent for July settlement, which expires Monday, declined as much as 55 cents, or 0.9 per cent, to US$63.32 a barrel on the London-based ICE Futures Europe exchange.
The European benchmark crude was at a premium of US$3.65 to WTI.
The more-active August Brent contract fell 32 cents to US$64.32. — Bloomberg
