LONDON: Brent futures dipped below $111 a barrel on Friday on the prospect of revived Libyan exports and more US crude soon finding its way to refiners, but losses were tempered by economic data pointing to an improved demand outlook. Brent crude fell 22 cents to $110.78 a barrel by 1048 GMT and looked set to lose 2 percent this week.
US oil lost 25 cents to $103.81 a barrel and was set to end the week down 1.7 percent after seven straight days of losses.
"More of the same in the oil markets with another day of losses as concerns over geopolitical supply disruptions continued to abate," analysts at ANZ said in a note. "But the falls were relatively small, suggesting the market is comfortable with prices at current levels." In the United States the near completion of the Seaway pipeline means an extra 450,000 barrels per day (bpd) of shale oil will soon be sent to US Gulf Coast refiners, further reducing their need of foreign oil, a bearish signal for the market.
The reopening of Libya's eastern Es Sider and Ras Lanuf terminals will add around 500,000 bpd of oil exports to the markets after a deadlock with local leaders that cut exports from the OPEC member to a trickle. "The market is kind of balanced at the moment with negative and positive news balancing each other. We have geo-political tensions in the Ukraine, Middle East and positive with Enterprise finishing the Seaway loop and Libyan port reopenings," Eugen Weinberg, analyst at Commerzbank in Frankfurt said.
The prospect of rising Iranian exports should sanctions ease remained a factor for oil markets with investors watching the talks to end the dispute over Tehran's nuclear programme sensitive to signs of progress.
Iran has reduced demands for the size of its future nuclear enrichment programme although the West is urging Tehran to compromise further.
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