Crude oil futures lower as Libyan production resumes at Sharara

Crude oil futures were on the backfoot early on Tuesday as reports of increased Libyan production continued to filtre through to trading floors.

Total production from the North African exporter, and OPEC member, recovered from roughly 500,000 barrels a day during the previous week to 660,000, Bloomberg first reported on Monday, citing a person familiar with the situation who was not authorised to speak.

Pumping at Libya's largest oil field, Sharara, resumed on Sunday and was followed by the lifting of the 'force majeure' on the country's exports from the Zawiya export terminal the next day.

"The return of Libyan production after a week-long shutdown also helped undermine prices, and it is easy for OPEC secretary general Barkindo to talk about the prospects of falling stock piles bringing the market back into balance, the fact remains that it is likely to happen at a much slower pace than originally envisaged, unless OPEC and non OPEC members decide to extend the current production curbs beyond the original June deadline," said Michael Hewson, chief market analyst at CMC Markets UK.

As of 0940 GMT front month Brent crude futures were lower by 0.492% to $52.80 a barrel on the ICE.