Crude extended a weekly decline amid speculation excess supply will increase as Libya restarted a pipeline halted by a fire and the U.S. idled fewer drilling rigs than in previous weeks.
West Texas Intermediate oil dropped as much as 4.2 percent after falling 4.6 percent last week. Oil fields in eastern Libya resumed pumping to the port of Hariga after a pipeline was repaired, according to state-run National Oil Corp. The number of oil rigs in the U.S. fell by 37 to 1,019 last week, the least in service since July 2011, data from Baker Hughes Inc. showed on Friday. It was the smallest cut in seven weeks.
Rising supply is contributing to a global surplus that drove crude down by almost half in 2014. OPEC has signaled that it™s prepared to let prices fall to a level that would force surging U.S. output to slow. American crude inventories and production expanded to the highest level in more than three decades, government data showed last week.
Source : Bloomberg