Dhaka, Bangladesh (BBN)- Oil prices extended downward trend in the global market on Wednesday further after a report that Libya’s oil production was set to be restored pressured prices overnight.
Global benchmark Brent slipped 0.57 per cent to $73.33 a barrel, while U.S. West Texas Intermediate futures fell 0.65 per cent to trade at $69.88 per barrel, according to the CNBC report.
On Tuesday, U.S. crude oil futures fell more than 4.0 per cent to log their lowest close since December, erasing all gains for the year, after a report said that Libya’s rival governments could broker a deal that would help restore oil output following days of disruptions. The eastern government in Benghazi had cut production in a dispute with the U.N.-backed government in Tripoli over the leadership of the central bank.
On the other hand, weak economic data from China, the world's largest oil importer, and the US, the largest oil consumer, triggered a fall in Brent oil prices after trading at $80.40 on Aug. 15.
On Aug. 26, following the declaration of the eastern-based Libyan Government, headed by Osama Hammad, to suspend oil production in the country, Brent prices once again climbed above $80, hitting $80.20 during the day, due to global supply concerns.
BBN/SSR/AD