Oil price falls to 1-month low as Nigeria, Libya poised to swell glut

Libya’s state oil company on Wednesday lifted curbs on crude sales from the ports of Ras Lanuf, Es Sider and Zueitina, potentially unlocking 300,000 barrels a day of supply. In Nigeria, Exxon Mobil Corp. was said to be ready to resume shipments of Qua Iboe crude, while Royal Dutch Shell Plc lifted a force majeure on ts Bonny Light crude. Force majeure is a legal clause that allows companies to halt shipments without breaching contracts.

World Oversupply

World oil stockpiles will continue to accumulate through 2017, a fourth consecutive year of oversupply, according to the IEA. Just last month, the agency predicted the market would return to equilibrium this year.

Gasoline rose for a second day after the restart of a pipeline carrying fuel to New York Harbor was delayed. The projected restart of Colonial Pipeline’s Line 1, which can carry more than 1 million barrels a day of gasoline from the Gulf Coast to the eastern U.S., was pushed back to next week.

“Gasoline is bucking the trend because of the Colonial Pipeline issues and the disruptions at the Whiting refinery, the biggest in the Midwest,” Flynn said. ” The Colonial shutdown will cause shortages in New York while Whiting will do the same in Chicago.”

Gasoline for October delivery climbed 2.18 cents to $1.452 a gallon. The contract touched $1.458, the highest since since Aug. 30.

Oil-market news:

Nigeria will resume exports of its Qua Iboe grade by the end of September, targeting shipments of 200,000 barrels a day, according to the Nigeria National Petroleum Corp.
The Alberta Energy Regulator approved three new oil-sands projects totaling 95,000 barrels a day of output, the provincial government said in an e-mailed release.
Noble Energy Inc. and Marathon Oil Corp. are weighing bids for Silver Hill Energy Partners, a Permian Basin explorer that could fetch more than $2 billion in a sale, according to people familiar with the matter.