Oil dropped for a second day as operations in the US Gulf of Mexico started to resume following Hurricane Delta making landfall and Libya took a major step toward reopening its biggest field.
Futures in New York fell to near $40 a barrel. Crude explorers and tugboat operators got back to work on Saturday after Delta, which had shut about 92% of oil production, made landfall as a hurricane. Libya’s National Oil Corp. lifted force majeure on the nation’s largest field which will reach its daily capacity of almost 300,000 barrels in 10 days, a person with knowledge of the situation said.
As well as the US and Libya, a strike in Norway was canceled on Friday which added more bearish supply news.
