Oil prices fall as Libyan rebels take Tripoli

Oil prices fell by more than $3 a barrel yesterday as Libyan rebels gained more ground, lifting hopes that the source of Africa's biggest oil reserves could soon restart exports.

Brent crude fell by as much as $3.47 (£2.10), or 3.2%, to $105.15 a barrel before regaining some ground, the Guardian reports.

Oil company shares benefited from the prospect of Libya resuming large-scale crude production, giving the FTSE 100 a much needed boost.

After losing £73bn, or 5.25% of its value last week, the blue-chip index rebounded on Monday, rising by 54.54 points to close at 5,095.30.

Investors bet that the potential business opportunities in Libya outweighed the decline in revenues implied by a falling oil price, sending BP and Royal Dutch Shell up by 2.2%.

Petrofac, the oil and gas services company, rose by 4.0%. Lamprell, the oil rigs installer, increased by 3.8%, while Cairn Energy and Afren, the exploration firms which are both active in Africa, jumped by 4.0% and 4.3%, respectively.