“Libyan crude production is coming back, better than expected, putting downward pressure on oil,” said Victor Shum, an analyst at Purvin and Gertz energy consultants.

Brent crude for November delivery settled $1.92 lower at $99.79 a barrel, the lowest settlement since February and off 21 percent from the 2011 peak over $127 hit in April.

US crude futures fell $1.94 to settle at $75.67 a barrel, the lowest close since September 2010.

Oil pared losses in post-settlement trade, with US crude trading back over $77 a barrel and Brent topping $101, rising as the US stock market turned positive just before the close.

Oil markets were depressed by the speedy recovery of Libya’s crude production capabilities after they were disrupted by civil unrest which culminated in the ouster of Muammar Qaddafi.

Qaddafi’s former prime minister said Tuesday he believed the deposed leader was still in Libya and would carry on fighting the country’s new leaders until the end.