Brent crude suffers biggest decline in more than two years

Oil prices drop US China Libya

Oil prices dropped wednesday amid trade war tensions and a move by Libya to ramp up its oil production.

Brent crude had the biggest decline since february 2016 dropping 6.9% and ending at $73.40 a barrel globaly. US crude fell 5% to $70.38 a barrel - its worst one day decline in a year.

The drop was triggered by Libya’s state oil company saying it plans to increase supply to match rising demand through the reopening of four export terminals that had been closed since late last month.

The falling prices are evidence of an unpredictable oil market.

Escalations in the Trump Administration's trade war with China also helped push oil prices down, with threats from Trump to impose even more tariffs on Chinese imports worth of $200 billion.

China was the world's biggest oil importer last year, the US was second, and together they account for about a third of the global oil demand. World economists are worried that trade tensions between the US and China will hurt the global economy.