Oil down on Libyan rebel gains

Crude prices have fallen after Libyan rebels retook key oil towns in the east of the country, including Brega, the main oil-export terminal and the refinery at Ras Lanuf.

They also announced that Gulf state Qatar has agreed to market crude produced from fields no longer under Colonel Gaddafi’s control.

Even with Qatar’s help to sell the oil, it is not clear when full exports can be resumed.

Before the uprising Libya was pumping around 1.5 million barrels per day and output is believed to have fallen by at least two thirds.

Some analysts and traders are sceptical about how soon things will return to normal because of damage to oil facilities and the need to bring in specialist staff to restart production.

In the past, about 32 percent of Libya’s oil went to Italy, 14 percent to Germany, 10 percent to France and China and five percent to the United States.