Oil prices dipped on Tuesday on expectations that a well-supplied market would be able to absorb disruptions that have cut Libya's crude production to a trickle.
Brent crude was down 65 cents at $64.55 a barrel, having hit a session low of $64.06. U.S. West Texas Intermediate crude settled down 20 cents at $58.34, after hitting a low of $57.68 earlier in the day.
Almost all of Libya’s crude export capacity is now under force majeure - a waiver on contractual obligations - after pipeline blockades in the east and west of the country hindered oil production.
If Libyan exports are halted for any sustained period, storage tanks will fill within days and production will slow to 72,000 barrels per day (bpd), said a spokesman for state oil company NOC. Libya has been producing about 1.2 million bpd recently.
Source : Reuters