Oil prices slip as Libya ups output

London - Oil prices extended last week's sharp losses on flat demand for crude on Mnoday and amid higher Libyan production, analysts said.

New York's main contract, West Texas Intermediate (WTI) for delivery in February, dropped 42c to $93.54 a barrel after rising earlier in the day.

Brent North Sea crude for February eased two cents to $106.87 a barrel in late London deals.

WTI had fallen by $1.48 on Friday, ending the week down more than $6.

Increase production

"Everyone is talking about how this year is going to be better but if you look at the data from the bigger countries like (the) US and China, they are all trickling down slightly," said Kelly Teoh, market strategist at IG Markets.

"You have all these countries that want to increase production but the demand is stabilising or flat at best," she said.

In Libya, oil output is increasing after its government last week convinced residents in the town of Ubari to end their five-month blockade of the Al-Sharara oilfield to obtain a more even distribution of oil revenues.

The oilfield's output reached 207 000 barrels per day (bpd) on Monday, compared with 60 000 when production resumed on Saturday, said a NOC spokesperson.