As production ramps up following the Gulf of Mexico shut-ins, reports that Libya took a major step toward reopening its biggest field have sparked concerns among oil investors (adding fuel to the weakness following the cancelation of Norway's oil worker strike).
With the passing of the hurricane and the resolution of the strike in Norway, "investors are more concerned about the higher output in the face of subdued demand," said Mihir Kapadia, chief executive of Sun Global Investments.
"However, more disruptions in the Gulf are likely in the coming weeks as the hurricane season continues. This could see prices increase again as workers will be expected to halt production during this time. "
This appears to have catalyzed a push through the $40 stops and set WTI notably lower...
Time for the Saudis to jawbone "optimism" once again!