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AKIPRESS.COM - Brent crude oil slipped to a three-week low under $111 a barrel on Monday as Libya geared up to resume oil exports from two ports closed for nearly a year, according to the Reuters.
The North Sea oil benchmark dropped 2.3 percent last week, its biggest weekly decline since January on the Libyan news and as Iraq's oil exports have remained largely unaffected by fighting in the north of the country.
Supply of oil to several major markets, including Europe, remains ample at a time when demand for several light oil products such as gasoline and diesel has been fairly sluggish.
German industrial output saw its biggest drop in more than two years in May, data showed on Monday, dampening fuel consumption in Europe's biggest economy.
"Aside from fading Iraq fears and the possible return of some Libyan volumes, key light product and distillate (margins) have been weakening," said Michael Wittner, oil analyst at French bank Societe Generale.
Brent was down 10 cents at $110.54 a barrel by 0845 GMT after reaching a three-week low of $110.40. U.S. oil fell 33 cents from Thursday to $103.73 a barrel. Friday, July 4, was a public holiday in the United States.
Libya's state-run National Oil Corp lifted force majeure from the major eastern Ras Lanuf and Es Sider oil ports after rebels agreed last week to end a blockade to press financial and political demands.