Brent crude oil prices struck a new two-year low on Wednesday, weighed down by abundant supplies and weak data, despite signs of stronger-than-expected demand in top consumer the United States.

Brent North Sea crude for delivery in November sank to $95.60 per barrel in afternoon London deals, touching the lowest level since July 2, 2012. It later stood at $96.15, down 69 cents from Tuesday’s closing level.

US benchmark West Texas Intermediate for November edged 18 cents higher to $91.74 a barrel.

“Brent crude … has fallen to a fresh 26-month low on a combination of disappointing data from Germany together with news about increased production in Libya, Nigeria and Iraq,” said Ole Hansen, head of commodities reasearch at Saxo Bank.

– German business confidence slumps –

Sentiment was rocked by news that Germany’s Ifo business confidence indicator fell in September, as the eurozone powerhouse economy continues to run out of steam.

The Ifo economic institute’s closely-watched business climate index fell to 104.7 points in September, from 106.3 points in August, the think-tank said in a statement.

That was the lowest level since April 2013 and stoked concern about energy demand from Europe’s biggest economy.

Meanwhile, traders fretted over the return of Libyan production to an already well-stocked market.

Singapore’s United Overseas Bank warned that the restarting of production in Libya’s biggest oilfield “added to oversupply woes in a flush market”.

Production at Sharara, Libya’s largest oilfield, restarted Monday after its closure last week, the Wall Street Journal reported.

The 340,000 barrels-per-day capacity Sharara field was shut last week due to intense fighting near the vicinity of the export terminal and refinery linked to it. The country remains in turmoil due to fighting between militias.

“Ample supplies, combined with a perceived slowing of global economies, (are) continuing to provide downward pressure” on prices, said Inenco analyst Dorian Lucas.

“Supply has been further bolstered as Libya’s output has rebounded back to 800,000 bpd following the restart of production at its Sharara oil field.”

Added to the picture, Nigeria was expected to export 1.9 million barrels of oil in November, reaching the highest level since September 2013, according to Commerzbank analysts.

– US inventories data –

Elsewhere, traders shrugged off the latest weekly energy inventories report in the United States.

The US government’s Department of Energy (DoE) said Wednesday that American crude reserves sank by 4.3 million barrels in the week ending September 19.

That confounded expectations for a 500,000-barrel gain according to analysts polled by the Wall Street Journal, and signalled stronger-than-expected demand.