• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 3 hours Iran Loses $130,000,000 Oil Revenue Every Day They Continue Their Games . . . .Opportunity Lost . . . Will Never Get It Back. . . . . LOL .
  • 1 day Iran Captures British Tanker sailing through Straits of Hormuz
  • 17 hours Renewables provided only about 4% of total global energy needs in 2018
  • 8 hours EIA Reports Are Fraudulent : EIA Is Conspiring With Trump To Keep Oil Prices Low
  • 2 days Drone For Drone = War: What is next in the U.S. - Iran the Gulf Episode
  • 2 days Today in Energy
  • 2 days Berkeley becomes first U.S. city to ban natural gas in new homes
  • 43 mins Shale Oil will it self destruct?
  • 21 hours Oil Rises After Iran Says It Seized Foreign Tanker In Gulf
  • 4 hours First limpet mines . . . . now fly a drone at low altitude directly at U.S. Navy ship. Think Iran wanted it taken out ? Maybe ? YES
  • 3 hours N.Y. Governor Signs Climate Bill
  • 8 mins U.S. Administration Moves To End Asylum Protections For Central Americans
  • 3 days LA Solar Power/Storage Contract
  • 3 days Why Natural Gas is Natural
Iran’s Tactical Move To Skirt Sanctions

Iran’s Tactical Move To Skirt Sanctions

Iran is shifting focus from…

Clean Energy Acquisitions Pick Up

Clean Energy Acquisitions Pick Up

The fear of a new…

Libyan Oil Production Down 30% Following Rocket Attack

Libya’s decision to shut down its most productive oil field after a rocket attack on a related refinery has cut the North African nation’s output by nearly 30 percent and helped boost sagging global oil prices.

Mansur Abdallah, the director of oil shipments at the damaged refinery, told Bloomberg News that the Sharara field had been producing about 250,000 barrels of oil per day before the Sept. 15 attack. Libya had been producing about 870,000 barrels of oil per day before that, according to National Oil Corp. spokesman Mohamed Elharari.

The refinery is in Zawiya, on Libya’s coast along the Bay of Sidra, roughly 25 miles west of Tripoli. It is connected by an oil pipeline to Sharara, about 450 miles to the south. Elharari said one of several militias involved in Libya’s civil war fired a rocket that exploded near a crude oil storage tank near the refinery.

Related: Low Demand, Increased Supply Conspire To Push Crude Prices Lower

Operations at Zawiya and extraction at Sharara were at first merely reduced, but on Sept. 18 they shut down altogether and will stay closed as long as clashes in the area persist, Abdallah said.

The production cut demonstrates that Libya can’t indefinitely ignore the civil war that’s been raging for the past year and which has seen rebels blockade oil ports along the country’s northeast Mediterranean coast. The blockade was lifted in July, and oil production and exports resumed.

Still, the shutdown at Zawiya and Sharara illustrate that Libya “remains in a state of civil war, where anything can happen,” Andrey Kryuchenkov, and analyst at VTB Capital in London, told Bloomberg.

Oil prices lately have dropped because of lower demand and high levels of production, even in conflict zones such as Iraq and Libya.

The price of oil rose slightly on Sept. 16 after Russia hinted it might deploy troops in Crimea, which it annexed from Ukraine in March, in response to NATO military exercises in Ukraine near the Polish border.

Prices also were bolstered when OPEC Secretary General Abdallah El-Badri predicted that the cartel would cut oil output to 29.5 million barrels per day from 30 million barrels per day at its scheduled meeting in late November.

Related: Libya May Be Focus Of Major Rift Between US And Regional Allies

As a result, the fighting around the Zawiya refinery is good news for the oil industry, according to Phil Flynn, an analyst at Price Futures Group in Chicago.

“The talk of OPEC reducing production has given us a boost [in oil prices],” Flynn told Reuters, “and the Libya news is important because the market was expecting the recovery of that country’s exports to continue.”

By Andy Tully of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | 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