The death of Libyan strongman Muammar Qaddafi on Thursday gave little bearing to oil markets.

Oil prices dipped at around noon London time on news of Qaddafi's capture and injuries, before advancing later.

"Qaddafi's death actually means little for today's oil price, but it does remove one of a series of risk factors to a sustained ramp-up in Libyan production," JPMorgan analyst Lawrence Eagles said in Sky News.

New York's main contract, West Texas Intermediate crude for delivery in November, fell 81 U.S. cents to $85.30 a barrel.

In London, Brent North Sea crude for December pushed $1.38 higher to finish at $109.76 on the Intercontinental Exchange.

What the international community is looking forward to now is the full restoration of Libya's oil exports following Qaddafi's demise.

"A lot of things will return quickly after this good news," Nuri Berruien, chairman of Libya's state-run National Oil Corp. said in Bloomberg.

Qaddafi's death will expedite the nation's efforts to return to normal crude-output levels, Mr Berruien said.

Libyan oil production fell from 1.6 million barrels a day to zero during the uprising that broke out at the start of 2011. Around 85 per cent of it was exported to Europe. When war broke out, its disappearance contributed to the rise in Brent crude from the North Sea.

But the International Energy Agency in Paris forecast Libya is poised to regain 600,000 barrels a day by yearend.

Meanwhile, the Organisation of Petroleum Exporting Countries sees member Libya restoring production to one million barrels per day within six months, then attaining pre-conflict levels by the end of 2012.