EIA's surplus forecast for H12020 eases oil prices

EIA's surplus forecast for H12020 eases oil prices
Oil prices softened on Wednesday extending losses as the International Energy Agency (IEA) forecast a market surplus in the first half of 2020, which eased concerns regarding disrupted crude output in Libya and Iraq.

Brent crude was down 0.4% at $64.35/bbl. US oil fell 0.5% to $58.09/bbl.

The head of the IEA, Fatih Birol, said on Tuesday that he expects the market to be in surplus by a million barrels per day in the first half of this year, Reuters reported.

Further, Libya's National Oil Corp on Monday declared force majeure on the loading of oil from two major oil fields after the latest development in a long-running military conflict.

Output will be reduced from about 1.2mn bpd if Libya's output is not restored soon.

Meanwhile, US crude production in large shale deposits is expected to rise to record highs in February, the US EIA said on Tuesday.

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