Oil prices down after Libya ceasefire

Oil prices are tumbling after Libya’s foreign minister declared a ceasefire and said the government would stop military operations.

After Foreign Minister Moussa Koussa’s announcement, benchmark crude swiftly dropped on the New York Mercantile Exchange, with the price plunging about 3 dollars in 15 minutes, or nearly 3%.

Oil was down 37 cents at $101.05 just minutes after the Nymex opened for trading.

Libya has been embroiled in a month-long rebellion that effectively stopped about 1.5 million barrels per day of oil exports.