• 3 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 6 minutes This Battery Uses Up CO2 to Create Energy
  • 10 minutes Phase One trade deal, for China it is all about technology war
  • 12 minutes Trump has changed into a World Leader
  • 3 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 6 hours Indonesia Stands Up to China. Will Japan Help?
  • 3 hours US (provocations and tech containment) and Chinese ( restraint and long game) strategies in hegemony conflict
  • 10 hours Shale Oil Fiasco
  • 24 hours Might be Time for NG Producers to Find New Career
  • 11 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 3 hours Historian Slams Greta. I Don't See Her in Beijing or Delhi.
  • 7 hours Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 17 hours Beijing Must Face Reality That Taiwan is Independent
  • 1 day Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded
  • 21 hours Anti-Macron Protesters Cut Power Lines, Oil Refineries Already Joined Transport Workers as France Anti-Macron Strikes Hit France Hard
  • 1 day China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024
Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

Ahead Of OPEC’s Meeting, Libya Ups Oil Output By 70%

Libya has done the unthinkable: oil production in the war-torn country is actually up substantially in recent weeks, as some idled oil fields came back into operation.

Libya’s oil production jumped by more than 70 percent this month, from roughly 260,000 barrels per day in August to 450,000 barrels per day in September, according to Bloomberg. Libya hopes to build on that momentum with the return of some major export terminals that have been sidelined for nearly two years. An oil tanker is set to ship the first cargo since 2014 from the Ras Lanuf export terminal, one of the country’s largest.

Libya has set a target of nearly 1 million barrels per day by the end of the year, a hugely ambitious objective that will be difficult to meet. The country still is hoping to boost its fledgling unity government, but violence and political strife is still widespread. The unity government does not have full control of the country.

But the latest increase is an encouraging sign that progress can be made. That may be good news for Libya, but the North African OPEC member will be dumping additional barrels onto an oversupplied market. And since oil traders have largely forgotten about Libya, which hasn’t been able to boost production beyond the roughly 300,000 barrels per day since 2014, the new supply comes as a bit of a surprise.

The oil market is now seeing an extra 200,000 barrels per day, supplies that have not been incorporated into many oil price forecasts. With the global surplus standing at about 1.6 million barrels per day in the first half of 2016, the additional barrels from Libya will have worldwide implications. The IEA already pushed back its timeframe for when it believes the market will balance until the middle of next year. If Libya continues to ramp up production, even the IEA’s dour assessment could prove to be too optimistic.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage




Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play