Oil prices down in Asian trade

SINGAPORE: Oil prices fell in Asia Wednesday following the return of disrupted Libyan production into an already well-stocked global market and as dealers await the latest US inventory report, analysts said.

US benchmark West Texas Intermediate for November delivery eased one cent to $91.55 while Brent crude for November fell 32 cents to $96.53 in late-morning trade.

Prices had headed upwards this week after an upbeat manufacturing gauge from China and news that US-led forces had started targeting militants in crude producer Syria.

However, on Singapore´s United Overseas Bank said the restarting of production in Libya´s biggest oil field "added to oversupply woes in a flush market".

Production at Sharara, Libya´s largest oil field, restarted Monday after its closure last week, the Wall Street Journal reported.

The 340,000 barrels-per-day capacity Sharara field was shut last week due to intense fighting near the vicinity of the export terminal and refinery linked to it. The week-long disruption put a pause to returning supplies in Libya, a member of the OPEC cartel, after a nearly year-long blockade by rebels of oil terminals.

The country remains mired in political turmoil due to inter-militia fighting. A Libyan government spokesman on September 11 said the North African state expects production to reach 1.5 million barrels per day from more than 700,000 barrels currently.