Oil prices fell after Libya resumed production

Oil prices fell for a second session on Monday after Libya resumed production at the weekend, while China, the world’s largest crude importer, is expected to release data showing that the post-pandemic economic recovery is facing bumps.

Brent crude futures fell 57 cents, or 0.7 percent, to $79.30 a barrel by 0055 GMT, while US West Texas Intermediate crude fell 52 cents, or 0.7 percent, to $74.90 a barrel.

Prices fell after the two benchmarks recorded gains last week for the third week in a row, touching the highest level since April, when production stopped in a number of Libyan oil fields and Shell stopped Nigerian crude exports, which led to tight supplies.

Four oil engineers and the Libyan Oil Ministry said that the production that stopped on Thursday in the Sharara and El Feel fields resumed on Saturday evening, with a total production capacity of 370,000 barrels per day.

Field 108 remained closed. Production was halted in these fields in the wake of a protest against the kidnapping of former Finance Minister Faraj Boumtari.

Two sources said on Friday that oil exports from Russia’s western ports are set to drop by 100,000 to 200,000 barrels per day next month compared to July levels, indicating Moscow’s fulfillment of its pledges of new supply cuts in line with Saudi Arabia, which currently heads the Organization of Nations. Petroleum Exporting Countries (OPEC).