Brent crude oil declined towards $106 a barrel today on signs of increase in Libyan oil production and weak demand in various regions.

Reuters reported that Brent crude was down 30 cents at $106.36, while US crude futures dropped 40 cents to settle at $100.43 a barrel.

The North Sea benchmark traded above $115 in June 2014 following an Islamist insurgency in western Iraq, which saw militants take control of large parts of the country, including its largest refinery.

The violence is reported to have little impact on supplies as Iraq’s main oil-producing and exporting centres in the south are yet to be attacked by militants.

"A spokesman for the state-run National Oil Corp said oil production in Libya has continued to increase and reached 470,000bpd."

Oil production in Libya has however increased in the last few weeks and extra supplies of its light crude are anticipated to enter markets shortly, traders say.

A spokesman for the state-run National Oil Corp said oil production in Libya has continued to increase and reached 470,000bpd.

Libya has an oil production capacity of more than one million barrels per day and the country may increase output significantly if the government establishes control over important facilities.

Oil supplies in Iran have been restricted by sanctions for various years and discussions in Vienna may lead to a softening or lifting of the limits.

Energy