Oil extends losses on signs of end to Libyan dispute, demand concerns [Video]

Oil prices fell on Wednesday, extending the previous day’s more than 4% plunge, on expectations the political dispute that has halted Libyan exports may be resolved and concerns over lower global demand growth.

Brent crude futures for November fell 28 cents, or 0.4%, to $73.47 at 0052 GMT after dropping 4.9% in the previous session. U.S. West Texas Intermediate crude futures for October were down 31 cents, or 0.4%, to $70.03 after dropping 4.4% on Tuesday.

Both contracts fell to their lowest since December on signs of a deal to resolve the political dispute between rival factions in Libya that cut output by about half and curbed exports.

“Selling continued in Asia amid expectations of a potential deal to resolve the dispute in Libya,” said Toshitaka Tazawa, an analyst at Fujitomi Securities Co Ltd.

“The market remained under pressure also because of concerns over sluggish fuel demand following weak economic indicators from China and the United States,” he said.

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