Brent crude oil looked poised to finish the month on a loss on Friday as it traded steadily above $102. The commodity traded at $102.10 at 8:40 GMT with market oversupply weighing on prices.
Reuters reported that the Organization of the Petroleum Exporting Countries ramped up its supply in August despite ongoing geopolitical tension in some of its member nations. Exports from Angola, Iran and Libya rose over the month, contributing to the organization’s increased output.
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Libyan oil exports have seen a massive boost this month as the government slowly reopens export terminals that had been shut down for months because of protests.
The North African country still has a long way to go before returning to its normal output capacity, but if the nation’s National Oil Corp is able to continue regaining control and restarting production, markets will likely see an influx of crude in the coming months.
Instability in several nations across the world has taken a back seat to supply worries recently, but some see the conflict between Russia and Ukraine escalating and playing into prices in the coming days.
On Thursday, Kiev accused Moscow of sending troops across the border in support of separatist groups that have taken control of several cities the eastern part of the nation. While Russia has denied any involvement, Western leaders are skeptical after the Kremlin annexed Crimea earlier this year.
Now, the U.S. and Europe are considering further sanctions against Russia in an effort to press the nation to back off. If the situation in Eastern Europe continues to worsen, oil prices may see a lift in the coming week.
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