Libya’s Oil Production More than Halved amid Oil Port Closures
Port closures at Ras Lanuf and Es Sider from disputes between Libya’s internationally recognized government in Tripoli and the self-declared government in the East, have caused the country’s oil production to plunge to 527K b/d from a high of 1.28M b/d in February, Reuters reports citing statements by the chief executive officer of Libya’s National Oil Corporation (NOC). The NOC head urged Eastern forces to transfer control of the seized oil terminals back to the legitimate government, and warned that output would continue to decline on a daily basis as long as port closures persist.
Libya’s oil production averaged 970K b/d during the 12 months ending May 2018, after having dropped to an annual average of just 390K b/d in 2016 due to previous armed clashes with regional militia groups, according to IEA data.
By early afternoon in London, ICE Brent was trading at $77.83/bbl, up $0.72/bbl from the end of last Friday’s trading day. The ICE Brent/WTI spread stood at $4.32/bbl, up $0.96/bbl w-o-w but still $4.32/bbl lower from last month’s average.