In the wake of recent developments, Libya’s National Oil Corporation now has full control over all its oilfields and export terminals. After the recapture of the Eastern region export terminals by the Libyan National Army (LNA) last September, and the recent announcement by the Petroleum Facilities Guard (PFG) to reopen the Al-Ryayna oil pipeline, the oil markets responded with concern. Fears were raised over the impact of Libya’s potential output increase on the global supply glut, and whether Libya’s possible production rise would offset the effect of the recently announced OPEC and non-OPEC output cuts. After all, Libya now has, theoretically, an additional capacity of around 1.1 mbpd, which could, combined with an increase in Nigeria’s production, disarm the global cut deal, and hamper its effect on oil prices and the supply and demand rebalance. However, examining Libya’s current oil industry situation and the political landscape closely may lead […]