• 4 minutes Nord Stream 2 Halt Possible Over Navalny Poisoning
  • 8 minutes America Could Go Fully Electric Right Now
  • 11 minutes JP Morgan says investors should prepare for rising odds of Trump win
  • 7 hours Permian in for Prosperous and Bright Future
  • 11 hours Daniel Yergin Book is a Reality Check on Energy
  • 7 hours YPF to redeploy rigs in Vaca Muerta on export potential
  • 6 hours Gepthermal fracking: how to confuse a greenie
  • 18 hours US after 4 more years of Trump?
  • 18 mins Oil giants partner with environmental group to track Permian Basin's methane emissions
  • 12 hours Top HHS official takes leave of absence after Facebook rant about CDC conspiracies
  • 26 mins Famine, Economic Collapse of China on the Horizon?
  • 23 hours The Perfect Solution To Remove Conflict Problems In The South China East Asia Sea
  • 3 days US Oil Refinery Fexibility
  • 2 days Surviving without coal is a challenge!!
  • 2 days Portuguese government confirms world record solar price of $0.01316/kWh
The Battle For Libya’s Oil Is Heating Up

The Battle For Libya’s Oil Is Heating Up

The past two days have…

Washington’s Libya Pivot Could Be A Game-Changer

Washington’s Libya Pivot Could Be A Game-Changer

US officials have met Libyan…

Putin Eyes Profit Over Influence In Africa

Putin Eyes Profit Over Influence In Africa

While Russia has been playing…

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