Oil prices fell nearly 1 percent yesterday as investors expected Libya’s oil production to eventually resume following a force majeure declared by the oil exporter on two major oilfields amid a military blockade.
Brent crude LCOc1 was down 56 cents, or nearly 0,9 percent, at $64,64 per barrel by 0748 GMT, after rising to its highest in more than a week on Monday. US West Texas Intermediate crude CLc1 was down 35 cents, or 0,6 percent, at $58,19 a barrel.
“The situation in Libya provided oil prices an early boost but the rally fizzled out as expectations remain that Libya’s oil production will eventually return to normal levels,” said Edward Moya, a market analyst with OANDA.
Two major oilfields in southwest Libya began shutting down on Sunday after a pipeline was closed off, potentially reducing national output to a fraction of its normal level, the country’s National Oil Corp (NOC) said. — Reuters.