SINGAPORE — Crude prices sank in Asian trade on Tuesday as a faster than expected resumption in Libyan crude production compounded persistent global economic woes, analysts said.
New York’s main contract, light sweet crude for delivery in November, fell $1.11 to $76.50 per barrel.
Brent North Sea crude for November delivery shed 92 cents to $100.79.
“Oil futures continue to be under pressure from concern over the eurozone debt crisis and rising crude supply,” said Victor Shum, senior principal for Purvin and Gertz energy consultants in Singapore.
“One of the main factors affecting oil prices is the [weak] prospect for economic growth, the eurozone debt crisis and a sluggish US economy,” he told Agence France-Presse.
Pessimism over the state of the US economy and worries that eurozone nations would be unable to fend off a debt crisis have been important factors in dragging down crude prices over the past few weeks.
Trader sentiment was dealt a further blow on Tuesday when Europe again put off a decision on unblocking promised loans to debt-laden Greece, ordering Athens to slash government spending.
Oil markets were also depressed by the speedy recovery of Libya’s crude production capabilities after they were disrupted by civil unrest which culminated in the ouster of veteran leader Moammar Gadhafi.
“Libyan crude production is coming back, better than expected, putting downward pressure on oil,” Shum said.
Austrian oil and gas giant OMV said Monday it had received its first delivery of Libyan oil, 575,000 barrels of condensate, since production was halted in March due to the turmoil in the North African country.
“OMV’s first cargo of Melittah condensate from Libya arrived last Friday at the port of Trieste (in Italy),” the company said in a statement.
The firm added that it was also optimistic regarding the outlook for Libyan production.
“We expect full production to be back within the next 12 to 18 months,” OMV said.