(Ecofin Agency) - The prices of crude oil dropped on Friday amidst fears that Libya and Nigeria’s resumption of exports would encourage a global oversupply. Brent crude features were trading at $46.20 per barrel, a drop of 0.8% from their previous settlement while West Texas Intermediate dropped also by 0.8% to $43.55 per barrel.

According to traders, the comeback of supply from Libya and Nigeria will hinder a rebalancing of the global crude market. The Libyan National Oil Corporation (NOC) on Thursday, said the country resuming oil exports from some of its main ports seized by forces loyal to eastern commander Khalifa Haftar and has lifted related force majeure contractual clauses. Meanwhile at Nigeria, ExxonMobil has prepared a pipeline to export Qua Iboe crude oil with first cargo projected to load as early as September ending, Reuters reports.

Another major factor that might drive the glut is the worries that U.S. rig counts would continue to increase. “The focus will turn to drilling activity in the U.S., with another rise expected to raise concerns about a recovery in U.S. output,” Australian bank ANZ said.

WTI prices that have reached above $40 a barrel since the beginning of August have facilitated the rise in the number of U.S. rigs. U.S. drillers added seven oil rigs in the week to Sept. 9, increasing the total rig count to 414, the highest since February.  

Anita Fatunji