WASHINGTON (dpa-AFX) - Oil prices traded lower on Tuesday as a firmer dollar and expectations of increased OPEC+ production from October overshadowed concerns over supply disruptions from Libya.
Benchmark Brent crude futures fell 1.6 percent to $76.27 a barrel, while WTI crude futures were down 0.9 percent at $72.92.
The dollar crept higher and bond yields rose ahead of the ISM U.S. Manufacturing PMI release for August later in the day.
Meanwhile, concerns mounted over China's economic woes, offsetting supply disruptions from Libya following political unrest.
In a major development, Libya's state National Oil Corporation has declared a state of force majeure at its El-Feel crude oil field from September 2. Operated by Mellitah Oil and Gas, this field has a capacity of 70,000 barrels a day.
The politically forced oil field closure by the eastern based Hafter regime comes as a result of the Central Bank of Libya crisis.
A Reuters report said the UN Support Mission in Libya held talks on Monday to resolve the dispute over control of the central bank.
This dispute triggered a blockade of crude oil production, following which Libya's oil production dropped to below half of its usual level.
Elsewhere, two crude oil tankers, the Saudi-flagged Amjad and Panama-flagged Blue Lagoon I, were attacked in the Red Sea on Monday by Yemen's Iran-backed Houthi rebels in a significant escalation of tensions.
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