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Large Crude Inventory Build Rocks Oil Prices

Large Crude Inventory Build Rocks Oil Prices

Crude oil prices went lower…

Libyan Fighting Stops After Prisoner Release

The deadliest fighting in Libya so far this year ended after less than 24 hours after one side in the conflict released a commander from the other, which had ignited the violent clash.

Some 27 people died during the Tripoli clash and 100 were injured, according to a local health agency quoted by Reuters.

The most powerful and heavily armed factions in Tripoli fought in several districts of the Libyan capital on Monday evening and Tuesday morning local time.

Following months of almost no incidents and clashes in Tripoli, one of the factions, the Special Deterrence Force, seized the commander Mahmoud Hamza from the 444 Brigade faction, a source in the brigade told Reuters.

On Tuesday, Hamza was returned, according to the report.

One interesting fact about the two factions is that both are supporters of the Government of National Unity. The infighting, then, suggests, Libya’s political balance is even more fragile than it looks.

In addition to the infighting, tensions remain considerable between the Government of National Unity and the eastern parliament, backed by the Libyan National Army of Khalifa Haftar.

Last month, the LNA’s commander threatened to use force to ensure an equal distribution of oil revenues. Haftar proposed the setting up of a committee to distribute those revenues which come from oil, most of which is produced in eastern Libya. If the authorities fail to do that, the LNA will use force to make its argument.

The deadline is the end of this month.

The country’s oil production, meanwhile, has remained largely resilient to the latest clashes between political and military factions. It averaged some 1.2 million bpd over the past year or so, with a temporary disruption in July when two of the largest fields were closed due to protests from local communities to the arrest of a former finance minister.

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By Charles Kennedy for Oilprice.com

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