Dubai: Brent crude fell more than 3 per cent on Wednesday nearing the keenly watched $50 per barrel on expectations of more output from Libya, and others may undermine the deal to cut output from other producers.
Opec and non-Opec members decided to extend their production cuts by about 1.8 million barrels per day (bpd) until the end of March 2018, as they hoped to bringing global oil inventories down to the industry’s five-year average.
But analysts feel that some countries like Libya, and Nigeria, which are not part of the agreement may be undermining the cuts from other oil producing countries.
Data Libya showed that the country is exporting around 500,000 barrels per day versus 300,000 across 2016.
Brent crude was down 2.91 per cent at $50.33 per barrel.
West Texas Intermediate was down 2.64 per cent at $48.35 per barrel.
