23.08.201703:54:00UTC+00Oil Prices Decline on Worries of Supply Glut as Libyan Production Rebounds

Oil prices retreated on Wednesday, as sentiment was burdened by worries of oversupply as Libyan production improves and as U.S. gasoline stockpiles rose despite the increased demand due to the peak summer driving season.

Brent crude futures stood at $51.64 per barrel, falling by 23 cents or 0.4 percent from their previous settlement. Meanwhile, U.S. WTI crude futures stood at $47.59 per barrel, 24 cents or 0.5 percent down from their last closing price.

Libya's Sharara oil field was slowly resuming operations after a shutdown. However, instability in the nation means that output could be volatile, according to traders. The country's biggest oil field hit an output of 280, 000 bpd , but was shuttered earlier this week due to a pipeline problem. Sharara's production is significant to the country's oil output, that has risen above 1 million bpd in late June, almost fourfold of its levels in the previous year.

Meanwhile, in the U.S., crude inventories declined by 3.6 million barrels in the latest week to 465.6 million, API reported. But gasoline stocks climbed by 1.4 million barrels, contrary to an expected decline of 643,000 barrel.