Oil fell for a third day as rising Libyan output added to speculation that unyielding OPEC production will prolong a global glut.

Futures slid as much as 0.5 percent in New York. Libya, a member of the Organization of Petroleum Exporting Countries, is pumping 500,000 barrels a day, said an unidentified official from National Oil Corp., Libya News Agency reported. Drillers in the U.S. reduced the number of active rigs for a 27th straight week, data from Baker Hughes Inc. showed Friday.

Oil’s recovery from a six-year low has faltered near $60 a barrel amid speculation the global glut will persist as rising prices spur a recovery in production. OPEC maintained its collective quota of 30 million barrels a day at a June 5 meeting as it sought to defend market share.

West Texas Intermediate for July delivery dropped as much as 29 cents to $59.67 a barrel in electronic trading on the New York Mercantile Exchange and was at $59.76 at 9:50 a.m. Sydney time. The contract decreased 81 cents to $59.96 on Friday. The volume of all futures traded was about 32 percent below the 100-day average. Prices have increased 12 percent this year.

Brent for July settlement, which expires Monday, declined as much as 55 cents, or 0.9 percent, to $63.32 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude was at a premium of $3.65 to WTI. The more-active August Brent contract fell 32 cents to $64.32.

Source : Bloomberg