Oil dropped for a second day as operations in the U.S. Gulf of Mexico started to resume following Hurricane Delta and Libya took a major step toward reopening its biggest field. Futures in New York fell below $40 a barrel. Crude explorers and tugboat operators got back to work on Saturday after Delta, which had shut about 92% of oil production, made landfall as a hurricane. Libya’s National Oil Corp. lifted force majeure on the nation’s largest field which will reach its daily capacity of almost 300,000 barrels in 10 days, a person with knowledge of the situation said.
Oil Tapering
OPEC+ created a three phase program of production cuts in response to the plunge in demand brought about by the coronavirus pandemic
Sources: OPEC and Bloomberg News
As well as the U.S. and Libya, a strike in Norway was canceled on Friday which added more bearish supply news. It all comes as the OPEC+ alliance considers whether to proceed with a plan to restore more output in January. With coronavirus cases accelerating in many countries, the group faces a tough decision at its next policy meeting on Nov. 30-Dec. 1.
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