• 3 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 7 minutes Saudi and UAE pressure to get US support for Oil quotas is reportedly on..
  • 11 minutes China devalues currency to lower prices to address new tariffs. But doesn't help. Here is why. . . .
  • 15 minutes What is your current outlook as a day trader for WTI
  • 38 mins In The Bright Of New Administration Rules: Immigrants as Economic Contributors
  • 45 mins Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 18 hours Will Uncle Sam Step Up and Cut Production
  • 2 days Movie Script: Epstein Guards Suspected Of Falsifying Logs
  • 19 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 6 hours Continental Resource's Hamm (Trump Buddy) wants shale to cut production.Can't compete with peers. Stock will drop in half again.
  • 7 hours Gretta Thunbergs zero carbon voyage carbon foot print of carbon fibre manufacture
  • 2 days Significant: Boeing Delays Delivery Of Ultra-Long-Range Version Of 777X
  • 15 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 2 days I think I might be wrong about a 2020 shakeout
  • 3 days Kremlin Says WTO's Existence Would Be In Doubt If the U.S., Others Left
  • 3 days Strait Of Hormuz As a Breakpoint: Germany Not Taking Part In U.S. Naval Mission
  • 52 days To be(lieve) or Not To be(lieve): U.S. Treasury Secretary Says U.S.-China Trade Deal Is 90% Done
Alt Text

Oil Glut Could Worsen As Libya’s Civil War Ends

A possible breakthrough in Libya’s…

Alt Text

China-South Sudan Oil Deal Raises Red Flags

China’s Belt and Road Initiative…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

One Huge Supply Risk Oil Market Shouldn’t Be Ignoring

While the oil market is fixated on the U.S.-China trade war for signs of demand, and on Iran, Venezuela, and the Middle East for signs of more supply disruptions, investors have not fully priced in the increased risk that Libya’s fighting could result in a serious oil supply outage, analysts told CNBC on Wednesday.  

The security situation in Libya has materially worsened after eastern strongman General Khalifa Haftar ordered in early April his Libyan National Army (LNA) to march on the capital Tripoli. The self-styled army has been clashing with troops of the UN-backed government in a renewed confrontation that could escalate and threaten to disrupt, once again, Libya’s oil production and exports.

Earlier this month, Hamish Kinnear, Senior Analyst for Verisk Maplecroft, wrote in a report that the struggle between the two factions is now extending to the central bank of Libya and to its National Oil Corporation.

“The security situation is deteriorating and with Libya lurching from one crisis to another, conditions are increasingly ripe for a supply shock,” CNBC quoted Stephen Brennock, an oil analyst with PVM Oil Associates, as saying in a research note published on Wednesday.

According to Standard Chartered’s global head of commodities Paul Horsnell, investors are “clearly ignoring” warnings from National Oil Corporation’s (NOC) chairman Mustafa Sanalla that the ongoing fighting could put the entire Libyan oil sector at risk.

“Protracted hostilities continue to hamper NOC operations and our ability to serve the Libyan people. Key infrastructure is being damaged and security eroded - allowing criminal elements to prosper,” Sanalla said in a statement last week.

“NOC will take all necessary measures to investigate and prosecute those committing crimes that undermine the oil sector and our ability to maintain operations. An immediate ceasefire is needed. The alternative is further escalation and destruction,” Sanalla added.

Meanwhile, Haftar told French newspaper Le Journal du Dimanche in an interview on Sunday that he is ruling out a ceasefire in the fight for Tripoli and accused the United Nations of looking to partition Libya.  

By Tsvetana Paraskova for 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