SINGAPORE: Crude prices dropped in Asian trade Monday after rebels agreed to reopen two of the four blockaded oil terminals in eastern Libya, analysts said.
New York’s main contract West Texas Intermediate (WTI) for May delivery dropped 30 cents to $100.84 a barrel in afternoon trade and Brent North Sea crude for May slid 80 cents to $105.92.
The announcement of a deal to reopen the Zueitina and Al-Hariga terminals was made in Zueitina in the presence of government members and rebel chief Ibrahim Jodhran.
The two sides have set a target of two to four weeks for a reopening of the other two terminals under blockade at Ras Lanouf and Al-Sidra.
Tan Chee Tat, investment analyst at Phillip Futures in Singapore, said Brent prices are facing downward pressure as the lifting of the blockades in Libya puts more supplies into the market.
“There are more indications that the negotiations are likely to achieve a breakthrough, resulting in further trimming of prices,” Tan told AFP.
WTI prices were lower Monday as investors booked profits from gains last week in response to a positive jobs report in the United States, the world’s biggest oil consuming nation.
“WTI gained quite a lot over the weekend, quickly rebounding back to above $100, although at the level of $101, it has led to some booking of profits resulting in the current losses,” Tan said.AFP