Oil prices down as supply fears fade

Oil prices edged lower in Asia Thursday on fading fears that conflicts in crude producers Libya and Iraq could result in a major supply disruption, analysts said. US benchmark West Texas Intermediate for October delivery was down 27 cents at $93.18 while Brent for October eased 26 cents to $102.02 in afternoon trade. In Iraq, the OPEC cartel's number-two producer, US air strikes that began on August 8 have pinned back the Islamic State group who have overrun large swathes of the country's north and west as well as parts of Syria. US President Barack Obama on Wednesday demanded the world take firm action against the ‘cancer’ of jihadist extremism in Iraq and Syria, a day after the militants released a video showing the beheading of US reporter James Foley. The jihadist expansion has not affected oil production in Iraq's south, where most of its oil infrastructure is situated. Supply to neighbouring Turkey and Jordan has however been disrupted. In Libya, output has been increasing in the vital oil sector despite ongoing fighting between Islamist militia and government forces. Mohamed Hrari, spokesman for Libya's National oil Corporation, said production on Monday reached 550,000 barrels a day, from around 400,000 barrels previously, according to AFP.