Oil Sheds $1/Barrel on Higher Supplies, Iran Diplomacy
NEW YORK, Sept 23 (Reuters) - Oil prices on both sides of the Atlantic shed more than $1 per barrel on Monday despite upbeat economic data from China and Europe, as higher crude output from Iraq and a possible thaw in U.S.-Iran relations boosted the supply outlook.
Oil prices plummeted last week as Libya's production recovered to nearly 40 percent of pre-war capacity after protesters agreed to reopen major western fields, and as fears of U.S.-led military action against Syria faded.
Brent crude oil has shed around $8 from its September high above $116 at the beginning of the month.
Libya's eastern Hariga port could reopen this week but negotiations were continuing in hopes of ending a dispute that has shut larger eastern terminals for weeks, the head of the energy committee in parliament said.
"There's been a lot of progress in Libya and that's outweighing some of the positive data from China and Europe," said Joseph Basilico, senior vice president of energy derivatives at Jefferies Bache in New York.
Brent crude for November delivery fell $1.06 to settle at $108.16 per barrel, after reaching a session low of $107.76. U.S. crude for November fell $1.16 to $103.59 a barrel.
Brent's premium over U.S. crude stood at $4.57, little changed from Friday's close of $4.55.
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