ANN/THE STAR – Oil prices fell yesterday, extending a plunge of more than four per cent the previous day and hovering at their lowest since December, on expectations that a political dispute halting Libyan exports could be resolved and concerns over sluggish global demand.
Brent crude futures for November fell 43 cents, or 0.6 per cent, to USD73.32 by 0645 GMT, after the previous session’s fall of 4.9 per cent. United States (US) West Texas Intermediate crude futures for October were down 49 cents, or 0.7 per cent, at USD69.85, after dropping 4.4 per cent on Tuesday.
Both contracts fell to their lowest since December on signs of a deal to resolve the political dispute between rival factions in Libya that cut output by about half and curbed exports.
“Selling continued in Asia amid expectations of a potential deal to resolve the dispute in Libya,” said analyst at Fujitomi Securities Co Ltd Toshitaka Tazawa.
“The market remained under pressure also because of concerns over sluggish fuel demand following weak economic indicators from China and the US.”
Libya’s two legislative bodies agreed on Tuesday to jointly appoint a central bank governor, potentially defusing the battle for control of oil revenue that set off the dispute.
