Oil prices fell on Tuesday as a rebound in Libyan crude production combined with an increase in US drilling to signal the potential for increased supply. But global inventories remain stubbornly high and many investors are betting that it will take many months for oil prices to respond convincingly to lower OPEC output. "Crude oil prices fell as increased drilling in the United States and a rebound in Libyan output weighed on investor sentiment," ANZ bank analysts said in a note to clients. "We believe the implemented production cuts will trigger a material drawdown in OECD oil inventories and thus higher crude oil prices," Staunovo said. "We expect Brent oil prices to rise above US$60 a barrel in three months."

Source: Egypt Independent April 04, 2017 08:26 UTC