RIYADH: Oil prices fell on Thursday for a second straight session, as demand concerns outweighed tight global supply after US government data showed tepid gasoline demand during the peak summer driving season.
Brent crude futures dropped 77 cents, or 0.7 percent, to $106.15 a barrel by 0427 GMT after slipping 0.4 percent in the previous session.
US West Texas Intermediate crude futures fell 88 cents, or 0.9 percent, to $99.00 a barrel following a 1.9 percent drop on Wednesday.
US hopes for global price cap on Russian oil by December
The US hopes to see a global price cap on Russian oil introduced by December, US Deputy Treasury Secretary Wally Adeyemo said on Wednesday.
“We are following on what the Europeans have done,” he told the Aspen Security Forum in Colorado.
“They introduced the idea of looking to do a price cap but they also said by December, they plan to put in place their insurance ban.
“Our goal is to make sure that as that insurance ban is going into place, we’re in a position where there’s a price cap that can be joined onto that that is a global one that helps to drive down global energy prices and also allows Russian energy to flow into the market place,” he said.
Russia will not export oil to the world market if the price is capped below the cost of production, Interfax news agency quoted Deputy Prime Minister Alexander Novak as telling Russian television earlier.
Iraq discovers new oil wells in Anbar
Iraq discovered new oil wells in the Anbar province, the state news agency said on Wednesday, quoting Governor Ali Farhan.
The governor said the wells were discovered in Al-Nukhayb and Tharthar regions, without specifying their output capacity.
Libya’s NOC says production resumed at several oilfields
Libya’s National Oil Corp. said on Wednesday that crude production had resumed at several oilfields, after lifting force majeure on oil exports last week.
Production has restarted at fields belonging to Waha Oil Company at a rate of 70,000 barrels per day and will be gradually increased until normal rates are achieved, the state-owned NOC said in a statement.
Production has also resumed from the Nafoura, Tibesti, Al-Ghani and Al-Bayda oilfields belonging to Harouge Oil Operations and Arabian Gulf Oil Co.
“Production at the two companies will be increased gradually after restarting the other fields,” NOC said.
A tanker entered Ras Lanuf port to ship 600,000 barrels of crude, it said, while another has arrived at the Zueitina oil terminal and will be loaded with one million barrels on Thursday.
(With input from Reuters)