Brent crude rose from the lowest level in more than two months after Libyan production dropped. West Texas Intermediate futures fluctuated before the U.S. Federal Reserve meets to review the pace of its stimulus.
The North Sea oil advanced as much as 1.2 percent after state-run National Oil Corp said crude output in Libya, holder of Africa’s largest reserves, declined to about 250,000 barrels a day because of labor protests. The Federal Open Market Committee, starting a two-day meeting tomorrow, is likely to delay reducing, or “tapering,” monthly bond purchases until March, according to a Bloomberg survey of economists.
“Brent is getting a lift from Libya,” said Bill O’Grady, the chief market strategist at Confluence Investment Management in St. Louis, which oversees $1.4 billion of assets. “The FOMC will probably have a doughnut and coffee meeting with no changes announced. We still haven’t really seen the impact of the government shutdown so it would be premature.”
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