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Oil prices fall as Greece and Libya crises hits demand

Oil prices fell in Asia this morning, with investor sentiment hit by fears over Greece's deepening debt crisis and a cut of global demand.

US crude was down $1.48 to $88.73 a barrel, while Brent North Sea crude eased 59 cents to $111.30.

Experts said that efforts to increase crude production by Libya remain under threat, after Colonel Gaddafi loyalists attacked oil infrastructure on Monday.

The International Energy Agency revised its expectations of Libyan crude production capacity from zero to between 350,000 and 400,000 barrels per day by the end of 2011, rising to 1.1 million by the fourth quarter of 2012.

Expected lower energy demand due to the poor economic climate is also dampening sentiment.

The Organisation of Petroleum Exporting Countries said demand for this year is expected to be 87.99 million barrels per day (bpd).

This is down from a previous estimate of 88.14 million bpd.