Oil steadies amid U.S. Gulf, Libyan production reopening

Oil prices steadied in early Tuesday trade, sitting on almost 3% of losses from the last session after production resumed in Norway and the U.S. Gulf and Libya reopened refineries in their largest oilfields.

The output restart came as rising COVID-19 cases in the United States and Europe stirred worries about fuel demand growth. 

OPEC and its allies have helped support prices amid the coronavirus pandemic with production cuts up to 9.7 million bpd. The organization’s market monitoring panel is set to meet next Monday.

U.S. West Texas Intermediate crude futures rose 1 cent to $39.44 per barrel, while Brent crude futures climbed 2 cents to $41.74 per barrel.

Workers are returning to U.S. Gulf platforms following Hurricane Delta’s passage and Norwegian workers are returning to rigs after the strike ended. Investors are focusing on Libya, which lifted force majeure at the Sharara oilfield on Sunday. 

Libya’s total production on Monday was at 355,000 bpd and is set to double once the Shahara field resumes pumping the 300,000 bpd it did before.