US Crude And Brent Fall As Iraq Export Fears Recede

Oil output in Libya rose to 300,000 bpd after the El Feel field increased production, further pressuring prices.

Data Disappoints

Michael Hewson, an analyst at CMC Markets, said disappointing U.S. economic data helped to cap oil prices.

U.S. consumer spending rose less than expected in May, which could prompt economists to temper their second-quarter growth forecasts.

The Commerce Department said on Wednesday gross domestic product fell at a 2.9 percent annual rate, the sharpest decline in five years, instead of the 1.0 percent pace it had reported last month.

"GDP growth was pathetic, and we shook it off yesterday, but I think it's definitely weighing on prices," said Phil Flynn, analyst with the Price Futures Group in Chicago, Illinois.

On Tuesday, the U.S. Department of Commerce ruled that some energy companies may export a variety of ultra-light oil if it has been minimally refined, in what may be a marginal loosening of a decades-old ban on selling U.S. crude abroad.

Enterprise Products Partners, one of two companies given Commerce Department approval to export condensate, said it could start exporting any time.


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