Oil prices fall as Gaddafi looks to be on the way out

As news over the last couple of days revealed a surge from Libyan rebels, oil prices started to fall as markets gained confidence in the likelihood of increased production from […]

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By Tom Gibson

As news over the last couple of days revealed a surge from Libyan rebels, oil prices started to fall as markets gained confidence in the likelihood of increased production from the North African State.

Brent crude futures fell 1.7% to $106.80 a barrel while some analysts have predicted price stabilization at around $100.

Markets are hoping that an end to the conflict will result in the country’s exports being restored, which would increase global supplies as Libya is the world’s 12th-largest oil exporter.

Output dropped to 100,000 barrels a day last month, which is less than a tenth of the 1.6 million barrels the nation pumped before the uprising started in February.

However, concerns remain over what damage might have been done to the infrastructure of the oil industry. Greg Smith, Oil Analyst at Fat Prophets told the BBC: “there is likely to be a delay before output is back to what it was. We could be looking at several months before we’re back to normality.”

Libya has Africa’s largest proven oil reserves.