Oil Falls to $105 After Gaddafi Leadership Announcement

7 March 2011 (Last Updated March 7th, 2011 18:30)

Oil prices fell to $105 after Libyan leader Muammar Gaddafi announced he was considering ways to step down to end the unrest in the country, and after OPEC moved to assure supply security. US crude fell 37¢ to stand at $105.07 and ICE Brent crude for April shed 40¢ to $114.64

Oil prices fell to $105 after Libyan leader Muammar Gaddafi announced he was considering ways to step down to end the unrest in the country, and after OPEC moved to assure supply security.

US crude fell 37¢ to stand at $105.07 and ICE Brent crude for April shed 40¢ to $114.64 a barrel at 05.22 GMT, reports Reuters.

Libyan output has been cut by one million barrels a day due to the country’s continuing conflict.

Algerian Oil and Energy Minister Youcef Yousfi told Reuters that the market is well supplied despite being hit by Libyan exports cut.

Saudi Arabia increased its production to about nine million barrels per day.