Crude prices sank in Asian trade today as a faster than expected resumption in Libyan crude production compounded persistent global economic woes.
New York's main contract, light sweet crude for delivery in November, fell 87 cents to $76.74 per barrel. Brent North Sea crude for November delivery shed 83 cents to $100.88.
Analysts said that oil futures continue to be under pressure from concern over the eurozone debt crisis and rising crude supply. They said the main factors affecting oil prices are the weak prospect for economic growth, the euro zone debt crisis and a sluggish US economy.
Pessimism over the state of the US economy and worries that euro zone 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 today 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 Moamer Gaddafi.
Austrian oil and gas giant OMV said yesterday 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.
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.
