SINGAPORE, April 07, 2014 (BSS/AFP) – 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 26 cents to $100.88 a barrel in mid-morning
trade and Brent North Sea crude for May slid 82 cents to $105.90.
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.
The Department of Labor said the economy added 192,000 jobs
in March, essentially meeting expectations and suggesting a
continuation of the trend of slow but steady improvement.
“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.