(MENAFN- The Peninsula) Brent crude fell below $86 a barrel yesterday on news of strong supply from Middle Eastern Opec producers and as a confirmed case of Ebola in New York spooked global equities markets.
Iraq increased its oil supply in October, and Libya's production remained high, despite deep instability in both countries.
Brent crude for December fell $1.02 a barrel to a low of $85.81 and was trading around $85.90 by 1205 GMT. US December crude fell 85 cents to $81.24 a barrel.
On Thursday, Brent crude prices rose sharply on news of lower supply from Saudi Arabia, although overall Saudi production increased month-on-month and some barrels went into storage.
Analysts said yesterday that the market had overreacted on the up side, given the increase in production.
"If Saudi Arabia is releasing less oil into the market despite rising production, this indicates weaker demand," said Carsten Fritsch, an analyst at Commerzbank, in a note.
"This can scarcely be interpreted as an argument for rising oil prices."
Saudi Arabia, the world's top exporter, previously sent signals it is comfortable with markedly lower oil prices and willing to maintain high supply levels to compete for market share.
Tony Machacek, a broker at Jefferies in London, said, "I was surprised that the market reacted as violently as it did: there was no indication that the Saudis were trying to push the price up."
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