Libya pipeline blast to cause drop in production: National Oil Company

Greg Lawrence
December 28, 2017

The Waha Oil Co. pipeline that carries crude to Libya's largest terminal will need about a week for repairs following an explosion on Tuesday, people familiar with the situation said.

The EIA estimated that the Brent (BNO) and United States crude oil (SCO) prices could average $57.26 per barrel and $52.77 per barrel in 2018.

Business Post reports that the price of the commodity increased by $1.81 today to close at $67.08 per barrel, hitting more than 2½-year highs.

Meanwhile, an American Petroleum Institute report which was said to show USA crude stockpiles falling by 5.96 million barrels last week didn't faze the market.

Fix of the pipeline could take about one week but will not have a major impact on exports, the head of Libyan state oil firm NOC told Reuters on Wednesday.

OH teens face murder charges after tossed sandbag kills man on highway
Olender said a second auto was damaged in the incident, so the teens each face two counts of vehicular vandalism. "He's gone. Four boys, three of them 14 years old and one 13, were taken into custody not far from the overpass.

The pipeline is being tested after repairs and full flows should resume in early January, its operator said on Monday.

The production cut extension and improving global crude oil demand will support oil prices in 2018.

"While supply impact is immaterial, it shows that with the market structurally undersupplied and inventories continuing to draw, geopolitical risk has now re-emerged as an important factor in day-to-day trading dynamics", analysts at Tudor Pickering Holt Energy Research said in a note. OPEC, plus Russian Federation and other non-members, have been withholding output since January 1 to get rid of an oversupply. The EIA will release USA crude oil production data on December 28, 2017.

The price hike was also due to the production cut in oil pro-ducing countries causing supply disruptions.

The latest US production figures are due to be published by the EIA on Thursday.

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