BEIJING, Sept 3 (Reuters) - Brent oil prices slid in
Asian trade on Tuesday as concern about a sluggish economy in
China bringing down demand outweighed the impact of a blockade
of oil production facilities in Libya.
Brent crude futures were down 37 cents, or 0.48%, to
$77.15 a barrel by 0156 GMT.
U.S. West Texas Intermediate crude, which did not
have a Monday settlement because of the U.S. Labour Day holiday,
was 28 cents up from its Friday close of $73.55.
"Oil remains under pressure given lingering Chinese demand
concerns. Weaker than expected PMI data over the weekend would
have done little to ease these worries," said Warren Patterson
of ING.
China's purchasing managers' index (PMI) hit a six-month low
in August. On Monday, China posted the first decline in new
export orders in eight months in July, and said new home prices
grew in August at their weakest pace this year.
"These demand jitters are clearly more than offsetting the
supply disruptions from Libya," Patterson said.
The United Nations Support Mission in Libya said it held
talks on Monday to resolve a dispute over control of the central
bank that triggered a blockade of the country's most valuable
commodity, sending oil production to less than half of its usual
level.
Rival factions concluded a draft agreement and aimed to sign
it on Tuesday, the UN said without providing further details.
Oil exports at Libyan ports remained halted on Monday and
production curtailed, six engineers told Reuters.
Libya's National Oil Corp (NOC) said on Monday it had
declared force majeure on its El Feel oil field from Sept. 2.
Total production had plunged to little more than 591,000 bpd
as of Aug. 28 from nearly 959,000 bpd on Aug. 26, NOC said.
Production was at about 1.28 million barrels per day (bpd) on
July 20.
Eight members of the Organization of the Petroleum Exporting
Countries and affiliates, known as OPEC+, are scheduled to boost
output by 180,000 bpd in October, a plan industry sources said
is likely to go ahead regardless of demand worries.
"There are suggestions they will stick to their planned
increase, however much will depend on how much more weakness we
see in the market," said ING's Patterson.
A Reuters survey on Monday found global oil output last
month fell to its lowest level since January.
Exacerbating supply concern, two oil tankers were attacked
on Monday in the Red Sea off Yemen but did not sustain major
damage. The Iran-backed Houthis claimed responsibility.
Also, Russia's Gazpromneft Moscow refinery suspended
operations at one unit for repairs. A fire broke out on Sunday
after a drone strike at the plant, which processed 11.6 million
tons of crude oil last year.