Oil Falters on Specter of Supply Bubble From U.S. Surplus, Libya
- Futures claw back some losses on Iran-Russia disagreement
- ‘Avalanche’ of bearish headlines overwhelmed demand outlook
This article is for subscribers only.
Oil had its worst week since late May as the U.S. considered tapping national crude reserves to quell rallying gasoline prices amid a restoration of key Libyan supplies that may throw worldwide supply and demand out of whack.
Futures sank 3.8 percent this week in New York. The Trump administration may draw on the 660 million-barrel Strategic Petroleum Reserve to increase domestic supplies, according to two people familiar with the situation. Meanwhile, Libya’s state oil producer restarted output from a major field that had been shut for months. The price slump was truncated on Friday when Iran disputed Russian claims about OPEC’s agreement to lift production.