SINGAPORE: Oil prices fell nearly 1 per cent on Tuesday 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 was down 56 cents, or nearly 0.9 per cent, 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 was down 35 cents, or 0.6 per cent, 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.
NOC had declared force majeure on crude loadings from El Sharara and El Feel oilfields in Libya’s southwest. — Reuters
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