Oil prices have marginally increased after Libya’s National Oil Company (NOC) declared force majeure on exports from the El Sharara oilfield. However, prices are also under pressure due to concerns over global stock markets and doubts over OPEC-led supply cuts.

Brent crude oil futures LCOc1 rose three cents to reach $60 a barrel, while US West Texas Intermediate (WTI) crude futures CLc1 slipped two cents to trade at $50.98, Reuters reported.

Last weekend, local tribesmen staged a protest at the El Sharara oilfield and forced workers to shut down production.

According to NOC, the shutdown would cause a production loss of 315,000 barrels per day (bpd) and an additional reduction of 73,000bpd at the El Feel oilfield.

“The general risk-off tone in global markets and the stronger dollar are contributing to the selling pressure.”

The increase in prices came after crude declined by 3% in the previous session amid ongoing weakness in global stock markets and fears that slowdown in oil demand-growth could offset the production cuts announced last week in Vienna by producer cartel OPEC.

Ever since crude futures hit four-year highs in early October, they lost 33% of their value, mainly due to economic slowdown concerns and an emerging oil oversupply.

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Markets are also sceptical whether all the producers that signed the supply cut deal will fully implement the announced cuts.

Russia energy minister Alexander Novak has reportedly said that the country is planning to reduce its oil production by 50,000bpd-60,000bpd next month. This is much less than the targeted supply cut of 1.2Mbpd as agreed last week.

Futures brokerage Oanda Asia-Pacific trading head Stephen Innes was quoted by the news agency as saying: “There remains a lot of uncertainty if the production cut is thick enough to make a significant dent in the global supply.

“The general risk-off tone in global markets and the stronger dollar are contributing to the selling pressure.”