• 4 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 7 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 37 mins Apartheid Is Still There: Post-apartheid South Africa Is World’s Most Unequal Country
  • 4 hours Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 1 day IMO 2020 could create fierce competition for scarce water resources
  • 4 hours Total nonsense in climate debate
  • 4 hours IRAN makes threats, rattles sabre . . . . U.S. makes threats, rattles sabre . . . . IRAQ steps up and plays the mediator. THIS ALLOWS BOTH SIDES TO "SAVE FACE". Then serious negotiations start.
  • 1 day IMO2020 To scrub or not to scrub
  • 16 hours Theresa May to Step Down
  • 1 day Devastating Sanctions: Iran and Venezuela hurting
  • 7 hours Will Canada drop Liberals, vote in Conservatives?
  • 1 day Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 8 hours Canada's Uncivil Oil War : 78% of Voters Cite *Energy* as the Top Issue
  • 4 hours Apple Boycott in China
  • 8 hours Trump needs to educate US companies and citizens on Chinese Communist Party and People's Liberation Army. This is real ECONOMIC WARFARE. To understand Chinese warfare read General Sun Tzu's "Art of War" . . . written 500 B.C.
The Single Most Bullish Indicator For Oil

The Single Most Bullish Indicator For Oil

Crude futures saw some headwinds…

Libya Doubles Oil Production Since OPEC's Algeria Meeting

Haftar

On a live interview at a local TV station today, Ibrahim Al-Awami, Libya's National Oil Corporation spokesman has reported that the country's oil production has rose to 670,000 bbl/day this week, up from the 363,000 bbl/day that the country produced when OPEC members representatives met in Algeria the last week of September

Libya's National Oil Corporation, NOC, is pushing hard to reach its previously set goal of 900,000 bbl/day before the end of the year.

Al-Awami expressed his confidence in the country's ability to quickly raise its output to 1.5m bbl/day if the government approves a proper budget to fund NOC operations. NOC is also working through judicial and political channels to reopen the 2 main fields in the south western region of the country, Al-Sharara (Operated by a JV with Repsol), and Al-Feel (Operated by a JV with Eni). Both fields have a total production capacity of 450,000 bbl/day, and their closure has caused the country a loss of $27B, according the NOC chairman, Mustafa Sanallah

Libya is resuming production after suffering a 3 year closure of its oil export terminals by the Petroleum Facilities Guards, PFG, over alleged claims of corruption in the oil industry. The Libyan National Army, LNA, seized control over the export terminals in mid-September, and called NOC to resume operations in the area.

This rapid production increase comes in a critical time. OPEC has agreed in September to cap its total production at 32.5m bbl/day, down from 32.24m bbl/day, but since the meeting, both Libya and Nigeria increased production by a total of 700,000 bbl/day, and with 4 weeks to go before the next OPEC meeting, both countries could add more

The ultimate goal of OPEC's deal is to control oil prices. The additional barrels produced by Libya or other countries add more to the supply glut and apply more pressure on oil prices, making a meaningful agreement even more challenging.

OPEC has repeatedly communicated that war-torn Libya and Nigeria, as well s post-sanctions Iran, are to be exempted from the deal, but does this mean a carte blanche for the three countries to add much production as possible? Only time will tell

By Ahmed Ben Mussa for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Faraj Gazah on November 01 2016 said:
    Libya will only be fixed when the Libyan people get what they long for:
    A country with no militias.
    A situation when no area dictates the rules.
    No islamist leaning armed political groups.
  • ane on October 31 2016 said:
    no wonder there is always a war.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News