Oil prices are declining amid the Libyan crisis

Oil prices declined on Tuesday in Asian trading after strong gains in previous sessions. Traders are monitoring signals of possible production disruptions in Libya and an aggravation of the situation in the Middle East.

The current price of Brent oil is $79.70 per barrel (yesterday's maximum was $80.52). North American WTI crude is trading near $76.65 per barrel (yesterday's high was $77.55).

Previously, oil prices were supported by expectations of lower interest rates in the United States. However, today reports of the closure of Libyan oil fields due to the internal conflict over the change of leadership of the Libyan Central Bank had a negative impact on the market.

Any prolonged disruptions in oil supplies from Libya, which produced almost 1.2 million barrels per day in July, could lead to a tightening of the situation on world oil markets.

Moreover, fears of an escalation of the conflict in the Middle East after Israel and Hamas failed to reach a ceasefire agreement also contributed to an increase in the risk premium.

Another factor of pressure on the oil market was the recovery of the dollar after recent losses, as the strengthening of the dollar makes oil more expensive for foreign buyers.