Oil Heads for Second Weekly Drop as Crude Supply Concerns Fade - Bloomberg

Oil Heads for Second Weekly Drop as Crude Supply Concerns Fade - Bloomberg:



"West Texas Intermediate and Brent headed for a second weekly drop amid speculation that Iraq’s crude production will remain unaffected by violence and as Libya prepares to resume exports from two terminals.



WTI futures were little changed in New York after falling for a sixth day yesterday, the longest losing streak since May 2012. Fighting in Iraq hasn’t spread to the south, home to more than three-quarters of its output. Libya will start shipping from Es Sider and Ras Lanuf at full capacity after taking back control from rebels, according to National Oil Corp. Hurricane Arthur is approaching the U.S. East Coast and may reduce driving over the Fourth of July holiday.



“The dying down of geopolitical tensions is clearly depressing oil prices,” Michael McCarthy, a chief strategist at CMC Markets in Sydney, said by phone today. “The market is removing some of the risk premium. West Texas has now fallen below the key support level of $105.25 a barrel, meaning that risks are now on the downside.”"



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