Oil prices down as Libya, Nigeria set to raise output

Brent for November settlement declined 82 cents, or 1.8 per cent, to $US45.77 a barrel on the London-based ICE Futures Europe exchange.

NEW YORK, Sept 16 (Reuters) – Crude oil prices fell 2 percent on Friday to multi-week lows as swelling Iranian exports reinforced fears of a global glut, while gasoline rallied on refinery and pipeline outages.

U.S. West Texas Intermediate crude futures fell 88 cents, or 2 percent, to settle at $43.03 a barrel.

Prices on Thursday gained 0.8 percent to close at $43.91 a barrel.

Both contracts have fallen 9-10 percent in one week, underlining how volatile the oil market now is.

Oil prices rebounded slightly Thursday after tanking the previous day, but gains were capped by United States stockpiles data and the prospect of rising output in Libya and Nigeria, dealers said.

Oil slumped after a source familiar with Iran’s tanker loading schedules said the third-biggest OPEC producer raised crude exports to more than 2 million barrels per day (bpd) in August, nearing pre-sanctions levels. That’s the lowest settlement since August 10 and prices fell 6.2% for the week, according to FactSet data.

It would also come just as members of the Organisation of Petroleum Exporting Countries (OPEC) and Russian Federation are set to meet in Algiers later this month to discuss a possible output freeze to steady world oil markets.

Later Wednesday, Libya’s National Oil Corporation said it would double production within four weeks after it was handed control of crucial ports that had been seized by forces loyal to the country’s rival administration.

“Exports will resume immediately from Zueitina and Ras Lanuf, and will continue at Brega … exports will resume from Es Sider as soon as possible”, NOC Chairman Mustafa Sanalla said.

In Nigeria, ExxonMobil was making preparations to load a cargo of Qua Iboe crude at the end of September, its first since it imposed force majeure in July, said trading sources.

Traders were also eyeing weekly U.S. rig count data, to be released by Baker Hughes later on Friday.

USA oil output, meanwhile, has grown more than that of any producer since 2010, data shows. Rigs targeting crude in the USA have had the biggest return to activity since oil began falling two years ago, and Kazakhstan’s giant Kashagan field is expected to start output this year, adding to the oversupply.