Crude oil on both sides of the Atlantic dropped on Thursday as supply fears began to ease after Libya declared an end to an oil crisis that has slashed exports from the OPEC member.
Libya’s government said it had reached a deal with a rebel leader controlling oil ports involving the handover of the last two terminals, potentially making an extra 500,000 barrels per day (bpd) of crude available for export.
Brent fell to a three-week low, dropping 50 cents to under $111 a barrel. U.S. crude declined 50 cents to under $104, also sliding to a three-week trough. The crisis in Iraq is still providing a floor for prices, however, with industry officials and analysts saying the world’s spare production capacity would struggle to cover for another big oil outage.