Oil falls as Iran, Libya output rises hit Opec deal momentum
A stronger dollar reached a 13-day high against major currencies after a positive US economic survey
LONDON — Oil prices fell nearly one percent on Tuesday on news that Iran and Libya have continued to increase production, overshadowing an Opec agreement struck last week to freeze output levels in a bid to stem a two-year price rout.Benchmark Brent crude oil futures were trading down 40cs, or 0.8%, at $50.49 a barrel at 8.26am GMT.US West Texas Intermediate (WTI) crude was down 42c, or 0.9%, at $48.39 a barrel."Today’s losses should come as no surprise as Libyan production is climbing higher and Iranian exports are on the rise too. Add to these that the dollar is strengthening and you have a bearish cocktail," said Tamas Varga, analyst at PVM Oil Associates in London.Iran’s crude oil and condensate sales have likely approached levels last seen at peak time in 2011 before western sanctions were imposed, sources with knowledge of the matter said.Iran, which is allowed to produce "maximum levels that make sense" as part of an output limit agreed on by Opec last week, likely sold 2.8-m...
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