Brent futures drop after as Libya's Sharara oilfield comes back online

Crude oil futures dropped following a report that a key oilfield in Libya had restarted production.

Output from the Sharara field, with a capacity of nearly 300,000 barrels per day, had restarted after the armed protests which were blocking pipelines in the North African country stopped, Reuters reported citing a local official.

The El Feel field, with capacity of 90,000 b/d, has also restarted.

Acting as a backdrop, OPEC chief Mohammad Barkindo said the global glut of oil supplies was shrinking but that stockpiles remain high and need to fall further.