West TX Oil Below $104.50 on Libyan Supply Expectations

Crude oil fell by about $1 on Wednesday on encouraging signs for supply from Libya and Iraq, with prices headed toward the lowest close in almost three weeks despite support from a big draw in U.S. oil inventories.

Libyan export capacity looked likely to recover by about 500,000 barrels per day as rebels blockading eastern oil ports have agreed to reopen the remaining two terminals at Es Sider and Ras Lanuf.

Brent futures were down $1 a barrel around $111 a barrel, while U.S. oil fell more than a dollar intraday, but bounced off its session low to trade down 86 cents at $104.48.

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