Drivers hope for relief as oil prices fall

Brent crude in London plunged more than three per cent, while US sweet crude fell nearly one per cent.

As the conflict escalated earlier this year, oil prices shot up by 20 per cent as the supplies in Libya, the world’s 12th largest oil exporter, were heavily restricted.

Libya pumped around 1.6 million barrels per day, nearly two per cent of global supply, before the conflict hit output when it broke out in February. Around 85 per cent of its output was exported to Europe. European refineries have struggled to make up for the production loss despite an increase from Saudi Arabia.

Analyst Andrew Lipow, president of consultancy firm Lipow Oil Associates, warned it would take time for the market to erase the hefty price increase.