Oil extends decline as traders weigh growth outlook, Fed’s path

Oil dipped -- after plunging on Friday -- as traders weighed whether aggressive US monetary policy tightening will lead to a recession that would stymie consumption.

Brent traded near US$112 a barrel after shedding more than 5 per cent Friday as escalating concerns about the pace at which the Federal Reserve is raising rates rattle financial markets. 

Daily oil production in Libya rebounded to around 800,000 barrels a day after the country’s energy minister said recently it had fallen to between 100,000 and 200,000 a day. That implied supply disruptions in the OPEC member’s production could be smaller than traders had expected.