Oil Drops a Second Day in New York As Libya Supply Concern Eases

Oil dropped for a second day in New York after assurances by the U.S., Saudi Arabia and the International Energy Agency that they can compensate for any disruption of Libyan shipments.

Futures for April delivery declined as much as 67 cents, or 0.7 percent, to $96.61 a barrel in electronic trading on the New York Mercantile Exchange. The contract yesterday surged to $103.41, the highest intraday price since Sept. 29, 2008 amid estimates that as much as two-thirds of Libya’s oil production is cut.

To contact the reporter on this story: Ben Sharples in Melbourne at bsharples@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net

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