SINGAPORE, August 22. Oil is getting cheaper on Monday against the strengthening of dollar, as well as due to the fact that the conflict in Libya is close to a decisive phase.
By 8:25 Moscow time, October futures for Brent crude fell by $ 2.41 to $ 106.21 for a barrel.
September futures for U.S. light crude lost $ 0.23 to $ 82.03 a barrel, reports Reuters.
On Sunday, the Libyan rebels entered the capital of Tripoli, virtually with no resistance from forces loyal to Libyan leader Muammar Gaddafi.
The Rebels are hoping to resume oil production to reduce fuel shortages and to partially restore the supply to world markets.
Before the war, Libya produced about 1.6 million barrels of oil per day, almost 2% of world production.
“You will see a relaxation in the supply of crude to the region as a result of what is happening in Libya”, – said Jonathan Barratt of Commodity Broking Services.
Lack of supplies from Libya led to the expansion of oil spread between Brent and U.S. crude (WTI).
Spread is reducing and is likely to shrink further in the light of the recovery of production in Libya, said Barratt.
Market players are waiting for speeches by FRS (U.S. central bank), Ben Bernanke, held on Friday in Jackson Hole, Wyoming, where regulators and researchers meet once a year to talk about narrow professional issues.
Last year, Bernanke used the opportunity to voice the idea that FRS could support the growth buying long-term bonds. This has become the prelude to the program, which came into effect shortly after his speech. However, this year no one expects dramatic statements.
