Oil prices fell on Thursday after news that two key oilfields in Libya had restarted, pumping crude for export into an already bloated market.
Benchmark Brent crude LCOc1 fell $1.14 a barrel to a low of $50.68 before recovering slightly to trade around $50.85 by 1220 GMT. The contract has fallen more than 10 percent from this month’s peak.
U.S. light crude oil CLc1 hit a low of $48.51, down $1.11 a barrel on the day.
Libya’s Sharara oilfield, with a production capacity of almost 300,000 barrels per day (bpd), has restarted after the end of protests by an armed group that had blocked pipelines there, a Libyan oil source and local official said on Thursday.
The oil source said El Feel oilfield, with a capacity of about 90,000 bpd, had also restarted.
The news helped push Brent crude through its 200-day moving average at $51.29 a barrel, a key technical support on price charts, which triggered further selling, analysts said.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.