Oil prices fall as weak demand overshadows Libya blockade
oil prices slid in Asian trade on Tuesday as concern about a sluggish economy in China bringing down demand outweighed the impact of a blockade of oil production facilities in Libya.
Brent crude futures were down 37 cents, or 0.48%, to $77.15 a barrel by 0156 GMT.
U.S. West Texas Intermediate crude, which did not have a Monday settlement because of the U.S. Labour Day holiday, was 28 cents up from its Friday close of $73.55.
«Oil remains under pressure given lingering Chinese demand concerns. Weaker than expected PMI data over the weekend would have done little to ease these worries,» said Warren Patterson of ING.
China's purchasing managers' index (PMI) hit a six-month low in August. On Monday, China posted the first decline in new export orders in eight months in July, and said new home prices grew in August at their weakest pace this year.
«These demand jitters are clearly more than offsetting the supply disruptions from Libya,» Patterson said.
The United Nations Support Mission in Libya said it held talks on Monday to resolve a dispute over control of the central bank that triggered a blockade of the country's most valuable commodity, sending oil production to less than half of its usual level.
Rival factions concluded a draft agreement and aimed to sign it on Tuesday, the UN said without providing further details.
Oil exports at Libyan ports remained halted on Monday and production curtailed, six engineers told Reuters.
Libya's National Oil Corp (NOC) said on Monday it had declared force majeure on its
