Oil prices drop as Libya boosts crude output
Crude oil prices fell on Tuesday as faster than expected resumption in Libyan crude production compounded persistent global economic woes, analysts said.
New York's main contract, light sweet crude for delivery in November, fell $1.17 to $76.44 a barrel.
Brent North Sea crude for November delivery shed 83 cents to $100.88 in midday London trade.
"Oil futures continue to be under pressure from concern over the eurozone debt crisis and rising crude supply," said Victor Shum, an analyst at Purvin and Gertz energy consultants.
"One of the main factors affecting oil prices is the (weak) prospect for economic growth, the eurozone debt crisis and a sluggish US economy," he told AFP.
Shum added: "Libyan crude production is coming back, better than expected, putting downward pressure on oil."
Oil markets were depressed by the speedy recovery of Libya's crude production capabilities after they were disrupted by civil unrest which culminated in the ouster of veteran leader Moamer Kadhafi.
Austrian oil and gas giant OMV said Monday it had received its first delivery of Libyan oil, 575,000 barrels of condensate, since production was halted in March due to the turmoil in the North African country.
"We expect full production to be back within the next 12 to 18 months," OMV added.
© 2011 AFP