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Oil prices slipped in Asian trade today as a rebound in Libyan oil production eased concerns over global supply, analysts said.
New York’s main contract, West Texas Intermediate crude for delivery in September, was down 30 cents at $106.26 a barrel in the morning trade, and Brent North Sea crude for September shed 16 cents to $108.54.
“Crude retreats as the Libyan exports are expected to resume next month,” Kelly Teoh, market strategist at IG Markets in Singapore, said in a note.
Libyan Petroleum Minister Abdelbari al-Aroussi had said yesterday that production in the country’s western oilfields had resumed after making progress in ending the protests at its main shipping terminals.
Libyan oil exports had plunged more than 70 per cent after protesters, including policemen and border guards, forced the terminals to shut over back pay demands. Others insisted the chief of security for the terminals withdraw his resignation.
Aroussi had yesterday said that the output was now running at 7,00,000 barrels per day, up from the low of 3,30,000 bpd recorded at the height of the protests last week but still far short of the pre-protest average of 1.42 million bpd.
The Libyan protests had exacerbated investors’ concerns about a disruption in global supply, amid fears that Egypt’s ongoing political crisis could force a closure of the Suez Canal and Sumed Pipeline.
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