Oil prices fell on Tuesday as a rebound in Libyan crude production combined with an increase in U.S. drilling to signal the potential for increased supply. Benchmark Brent crude oil was down 20 cents at $52.92 a barrel by 0835 GMT. U.S. light crude oil was 20 cents lower at $50.04 a barrel. Both benchmarks recovered from four-month lows last week on expectations that the Organization of the Petroleum Exporting Countries would manage to tighten supply by cutting production under a deal agreed at the end of last year. But global inventories remain stubbornly high and many investors are betting that it will take many months for oil prices to respond convincingly to lower OPEC output. “Libya’s gain means oil market pain,” said Tamas Varga, senior analyst at London brokerage PVM Oil Associates. […]