NOC Chairman Mustafa Sanalla said Libyan production could be raised to 600,000 barrels per day (bpd) from about 290,000 bpd within a month.
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But the EIA also reported that inventories of distillates, which include diesel and heating oil, rose by 4.6 million barrels in the week to September 9, versus analysts’ expectations of an increase of 1.5 million barrels.
Saudi Arabia, which possesses nearly one-fifth of the world’s proven oil reserves, has regained the position of the world’s top oil producer by lifting US behind for the first time since 2014, the International Energy Agency (IEA) reported. That earlier draw, the highest in 15 years, was due to Tropical Storm Hermine delaying oil arrivals into the U.S. Gulf Coast for several days.
Brent crude dipped to $46.48 per barrel after the opening bell on Wednesday, down from $47.10 per barrel at the closing bell on Tuesday.
Crude prices fell about 3 percent for a second straight day on Wednesday following a 4.6 million barrel build in USA distillates inventories.
The drop in USA output was mostly driven by a decline in shale oil production, which saw investments slump by 66 percent since 2014, consultants Rystad Energy said in a note on Monday.
US West Texas Intermediate (WTI) crude futures slid $US1.32 cents, or 2.94 per cent, to settle at $US43.58.
However, prices could feel the heat due to the glut in crude oil, gasoline, and distillate inventories.
Expectations that Nigerian crude supplies could also be returning as offers for October-loading Qua Iboe crude have emerged even as force majeure on the grade remains in place.
Gasoline stocks rose by 567,000 barrels, compared with analysts’ expectations for a 343,000-barrel gain.
Instead, it warned that the glut – which has sent prices crashing in recent years – would linger “at least through the first half of next year”.
Demand growth in developed countries has “all but vanished” and slowed drastically in heavy consumers in Asia such as China and India, the IEA said.
OPEC members are set to meet meet on the sidelines of the International Energy Forum.
The International Energy Agency released its monthly oil market report on September 13, 2016.
“There are still major doubts about whether a deal can be done”, IG Markets said in an analysis.
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