Crude oil prices are falling from last week's highs as Libyan production rebounds

Courtney Goldsmith
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Oil prices have tumbled after reaching a three-week high last week (Source: Getty)

Rebounding Libyan production and a stronger US dollar have pushed crude oil prices lower today.

Global benchmark Brent crude was trading 0.38 per cent lower at $52.92 a barrel while West Texas Intermediate was down 0.38 per cent at $50.05.

"Crude oil prices have come under fresh pressure as a Libyan production recovery following recent disruption saw the sell-off from Friday's three-week highs continue," said analysts at Accendo Markets.

"A US dollar rebound this morning is also adding to bearish sentiment in the market for crude, which is seeing US Crude test the key $50 support level while global benchmark Brent hovers marginally above $52.80."

Libya's crude production, which had fallen by around 250,000 barrels per day (bpd), has increased as state-owned National Oil Crop lifted a force majeure on loadings of Sharara oil from the Zawiya terminal in the west of the country, according to reports.

US drilling is also weighing on crude prices as last week the country's rig count grew for the 11th week in a row.

Markets are looking to the Organisation of the Petroleum Exporting Countries (Opec) for signs they will extend production cuts which came into effect at the start of the year. Opec's cuts aim to reduce output by around 1.8m (bpd) to prop up prices and cut the global oversupply.

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