Investing.com -- Oil prices fell sharply on Monday amid lowering Libyan oil supply and comments from Iran's foreign minister on the potential of increasing oil exports if economic sanctions against his nation are lifted.
On the ICE Futures Exchange in London, prices for April deliveries of brent crude oil tumbled 4.70% or 2.94 to $59.64 a barrel. Last week, brent oil closed at above $62 a barrel, following a volatile week of trading.
On the New York Mercantile Exchange, prices for WTI Crude Oil delivery in April fell 0.14 points or 0.28% to $49.62 a barrel. Sharp losses in afternoon trading reversed previous gains from the morning when WTI crude increased 49 cents or 0.98% to trade at $50.25.
In Libya, militants from the Islamic State were blamed for attacking the Bahi and Mabrouk oil fields damaging a pipeline to a Libyan oil port, according to a security force protecting energy infrastructure in the African nation. The security forces are reportedly trying to stifle another conflict on a third oil field, Libyan officials said.
Iranian officials, meanwhile, are confident that its oil exports could be boosted substantially if a deal on its nuclear program can be reached shortly. Iran's oil exports have been limited over the last several years by economic sanctioned levied from the United States and its international partners.
But Iran foreign minister Mohammad Javad Zarif may have complicated negotiations with acrimonious comments made on Monday. Addressing the United Nations Human Rights Council in Geneva, Zarif blamed Western nations for the rise of ISIS, citing its efforts to marginalize and disenfranchise Muslims. The efforts, Zarif added, have been responsible for Islamic radicalization.
Oil prices slid Monday after futures rose last month to snap a seven-month losing streak. Following a steady drop in oil futures since June, prices increased in February amid lowering supply. On Friday, oil services Baker Hughes (NYSE:BHI) said in its weekly report that rig counts were down 31% from last year, as the pace of decline slowed by 33 rigs to 986.
Elsewhere, the price of natural gas futures for April delivery dropped 0.008 or 0.30% on Monday to $2.63 per million BTUs.