The Energy Report "
Oil prices are on the rise as Libya’s state-run National Oil Corp. declares a force majeure on loadings of Sharara crude from the Zawiya oil terminal and on loadings of Wafa field condensate from the Mellitah terminal and drop-in oil inventory at the Cushing, Oklahoma NYMEX delivery point. That was the first drop in five weeks at the storage hub and while overall supply did rise, it was slightly less than expected. Today oil not only awaits confirmation from the Energy Information Administration report on supply, but also must worry how the market is going to take the UK official notice of Brexit from the European Union. The corresponding rise in the dollar is lowing crude oil rise even with a lot of bullish technical and unfatal support. There is also joy in energy land as President Donald Trump rolled back EPA climate rules. A few weeks ago I said that anyone betting on Libya’s oil production to be sustained might go broke. The complex situation in Libya is making OPEC production cuts really bite. OPEC skeptics have constantly been wrong about the cartel and their ability to comply with cuts. They also argued that even if they did comply with cuts countries like Libya, with no quota, would make up that void. How is that working for them. While it is unclear how long the outage and force majeure will remain, the larger question may be how long they can keep exporting after they resume. Libya has a long way to go before anyone can take them seriously as a reliable supplier of oil."
https://blog.pricegroup.com/2017/03/29/brexit-bounce-and-climate-rules-the-energy-report-032917/