Brent crude slipped by 64 cents to $125.07 a barrel today as concerns over global supply eased, while the Chinese Government put in place a plan to raise gasoline and diesel prices by up to 7%.

The increase in prices would be the highest in three years and has sparked concerns of lower energy demand in the world’s second-largest oil consumer, reports Reuters.

Meanwhile, next month, Libya is planning to exceed the level of oil production it reached in February last year, before the uprising.

In addition, US crude was down 50 cents at $107.59 a barrel, following news of closure of Valero Energy’s 235,000 barrel a day refinery in Aruba, tightening regional supplies.