Mysterious Outage In Libya Could Drive Oil Prices Higher

31 Mar 2017   Libya

It’s been a rollercoaster ride for Libya’s oil sector the last few months . With production from this important OPEC player swinging wildly with unstable politics in the country. And news this week suggests things just got worse for Libya’s oil industry — in a major way. Unnamed sources in the country told Bloomberg Wednesday that Libya’s largest oil field, Sharara, has been suddenly shut in. With the pipeline carrying crude from this massive operation having been completely idled. As a result, sources said Libya’s overall oil production has now fallen to 560,000 barrels per day. Coming just days after Libya’s National Oil Corp. had publicly pegged the country’s production at 700,000 b/d. That suggests the stoppage at Sharara has lowered production by 140,000 b/d — representing a 20% decline. With the shortfall happening virtually overnight, and with no apparent warning to oil traders. Here’s the most important point: […]

Comments are closed.