The oil price looks optimistic. What are the reasons?
Crude prices sag further as Libyan field resumes output
On Tuesday, crude prices tumbled further in Asia trade, reacting to a recovery in output at Libya's largest crude field as well as doubts as for OPEC-led output cuts keep putting pressure on the market.
Brent crude futures slid 0.4% being worth $52.14 a barrel, having dived 0.1% during the previous session.
American crude futures headed south 0.4% too, hitting $49.21, having sunk 0.4% on Monday.
Output from Libya's 270,000 barrels-per-day Sharara field was getting back to normal after a short disruption when armed rebels managed to break into a control room in Zawiya, as the National Oil Corporation informed on Monday.
Apparently, Libya was exempted from an initiative to reduce global output and spur crude prices, led by OPEC as well as other major producers, including Russia.
The revival of the North African country's output has hampered the OPEC's vigorous efforts to tame supply, driving doubts over the overall effectiveness of the output reductions. In July, Libya produced up to 1.03 million bpd, as the fresh Reuters survey states.
PMI reports from the EU, the UK, and the USA will be released during the day!
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
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