Oil prices fell
by 1 percent on Wednesday as rising Libyan production fuelled concerns
that
OPEC-led output cuts are being undermined by several countries that are excluded from the deal.
Global
benchmark Brent crude futures dropped 52 cents to $51.32 a barrel by
0838 GMT and U.S.
West Texas Intermediate (WTI) crude futures traded at $49.14, also down 52 cents.
Certain OPEC members, such as Libya and Nigeria, and shale oil producer the United States are not part of the agreement, leaving room for further production growth from these exporters.
Libya's oil production is expected to rise to 800,000 bpd this week, state-run National Oil Corporation said on Monday, which is likely to boost the country's exports.
Shipping data on Thomson Reuters Eikon shows that, excluding pipeline exports, Libya has sent out an average of 500,000 bpd of crude oil so far this year, compared with only 300,000 bpd shipped on average in 2016.
Libya's rising production and exports add to soaring U.S. output, which is largely because of a more than 10 percent jump in shale oil drilling since the middle of last year to more than 9.3 million bpd, close to top producers Saudi Arabia and Russia.
Meanwhile compliance with the OPEC-led deal remained high among the group's members, with industry sources saying that Russian figures for May also show output in line with its pledge.
Saudi Arabia's Energy Minister and his Russian counterpart said on Wednesday that cooperation between OPEC and non-OPEC producers is seen lasting beyond next March, when the current output deal expires.
OPEC-led output cuts are being undermined by several countries that are excluded from the deal.
West Texas Intermediate (WTI) crude futures traded at $49.14, also down 52 cents.
Certain OPEC members, such as Libya and Nigeria, and shale oil producer the United States are not part of the agreement, leaving room for further production growth from these exporters.
Libya's oil production is expected to rise to 800,000 bpd this week, state-run National Oil Corporation said on Monday, which is likely to boost the country's exports.
Shipping data on Thomson Reuters Eikon shows that, excluding pipeline exports, Libya has sent out an average of 500,000 bpd of crude oil so far this year, compared with only 300,000 bpd shipped on average in 2016.
Libya's rising production and exports add to soaring U.S. output, which is largely because of a more than 10 percent jump in shale oil drilling since the middle of last year to more than 9.3 million bpd, close to top producers Saudi Arabia and Russia.
Meanwhile compliance with the OPEC-led deal remained high among the group's members, with industry sources saying that Russian figures for May also show output in line with its pledge.
Saudi Arabia's Energy Minister and his Russian counterpart said on Wednesday that cooperation between OPEC and non-OPEC producers is seen lasting beyond next March, when the current output deal expires.
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