The sharp fall in oil prices continued on Friday as European countries started announcing fresh lockdowns to fight the second wave of the coronavirus.
International benchmark Brent crude was trading at $37.91 per barrel at 0637 GMT for a 0.91% decrease after closing Thursday at $38.26 a barrel.
American benchmark West Texas Intermediate (WTI) was at $35.97 a barrel at the same time for a 0.55% decrease after ending the previous session at $36.17 per barrel.
As the major economies in Europe were forced to renew lockdowns due to the surge in coronavirus cases, the concerns for demand and economic recovery led the sharp slides in oil prices.
France and Germany announced nationwide lockdowns and some other countries including Italy and Spain brought strict restrictions to curb the spread of the coronavirus.
On the supply side, Libya’s comeback as an oil exporter while the global markets have been struggling with weak demand is exerting pressure on oil prices.
Libya's crude output has increased significantly over the past month, averaging just close to 600,000 barrels per day as the country started operations in several major oil fields.
Price were further pressured as OPEC+ oil production cut agreement will end in December and the group will increase its production 2 million barrel per day in January.
The OPEC+ group, which has curbed output since January 2017 to support prices, is now reducing production by 7.7 million b/d, down from cuts totaling 9.7 million b/d imposed from May 1 to Aug. 1.
By Sibel Morrow