NEW YORK (Reuters) – Oil prices settled about 3% lower on Monday as force majeure at Libya’s largest oilfield was lifted, a Norwegian strike affecting production ended and U.S. producers began restoring output after Hurricane Delta.
Brent crude LCOc1 settled down $1.13, or 2.6%, to $41.72 a barrel. U.S. West Texas Intermediate CLc1 ended 2.9%, or $1.17, lower at $39.43.
Production in Libya, a member of the Organization of the Petroleum Exporting Countries (OPEC), is expected to rise to 355,000 barrels per day (bpd) after force majeure at the Sharara oilfield was lifted on Sunday.
Rising Libyan output will pose a challenge to OPEC+ – a group comprising OPEC and allies including Russia – and its efforts to curb supply to support prices.
“It’s a large chunk of production to come online when you don’t need any of those barrels, which is bad news for the supply side of the equation” said Bob Yawger, director of energy futures at Mizuho in New York.