Oil prices down 3 per cent despite lower Libyan production

Price of oil had risen 33 per cent since the middle of February over fears of reduced supplies during protests in oil-producing states.

THE PRICE OF OIL is falling after Goldman Sachs warned investors that crude oil is due for a “substantial pullback.”

Goldman analyst David Greely noted that global supplies remain “adequate” even though the rebellion in Libya shut down production there.

Before fighting broke out in February, Libya exported about 1.5 million barrels per day — 2 per cent of global demand — mostly to Europe.

Fears of tightening global supplies have helped push oil prices 33 per cent higher since the middle of February.

Benchmark West Texas Intermediate crude for May delivery tumbled $3.47, or 3.2 per cent, to $106.45 per barrel on the New York Mercantile Exchange, shedding nearly two weeks of price increases.

- AP

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