Libya's national oil production fell to 527,000 barrels per day (bpd) from a high of 1.28 million bpd in February following recent oil port closures, the head of the National Oil Corporation (NOC) said on Monday.
While the WTI-Brent spread has narrowed since May due to the outage at Syncrude, it could widen again toward the end of the year to $7.50 in Q4, Barclays said.
Oil prices have gained for most of 2018 on tightening supply and strong demand but investors fear a decision by the Organization of the Petroleum Exporting Countries to increase production may dampen price gains and offset production losses in countries including Libya. [O/R]
"Indeed, OPEC's decision and disruptions elsewhere will deplete the market's spare capacity cushion, raising prices," Barclays said, however, warning bulls to beware of Saudi Arabia's and Russia's clear willingness to cap upside in prices.
"As prices rise to higher levels, the air is growing thin and oil demand is already faltering," Barclays noted.
(Reporting by Apeksha Nair in Bengaluru; Editing by Keith Weir)
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