Libya weighs on oil prices

The fall of the Libyan regime and the resumption of oil supplies from that country is expected to drive down oil prices, and this is likely to exert pressure on huge spending plans by the Gulf governments, experts say. Global oil prices have been facing downward pressure in recent weeks as slowing economic growth in the US and Europe continued to undermine global oil demand. In London, Brent crude for October delivery was down $3.22 per barrel to $105.40 in early trade on the ICE Futures exchange, but later the prices edged up to $107.17. The US benchmark West Texas Intermediate (WTI) was trading 1.4 per cent up at $83.60 in early trading on the New York Mercantile Exchange. "Oil prices, which have been under pressure recently from global growth concerns, are likely to remain pressured as the prospect of Libyan oil coming back on to the market is raised," Tim Fox, chief economist of Emirates NBD, wrote in a note.