Libya oil production on decline - Mar 6
Posted: Sun Mar 06, 2022 4:27 pm
The global energy crisis is going to go from Bad to Worse.
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Bloomberg:
Libya’s oil production has fallen below 1
million barrels a day, as the OPEC member plunges deeper into
political crisis just as prices surge following Russia’s
invasion of Ukraine.
Output is down to 920,000 barrels daily, Oil Minister
Mohammed Oun said in a response to a query from Bloomberg. It
stood at roughly 1.2 million barrels on Wednesday.
State-controlled National Oil Corp. on Sunday halted
shipments from the ports of Zawiya and Mellitah after militias
shut down Sharara, the country’s biggest field, and El Feel. The
fields serve the two western terminals, which have been put
under force majeure, a clause in contracts allowing exports to
be suspended.
The drop marks another supply problem for Organization of
Petroleum Exporting Countries. Major importers, including the
U.S. and Japan, have called on the group to raise output quickly
to help bring down fuel prices. Crude has surged to more than
$115 a barrel in the wake of Russia’s attack.
The shutdown of the two fields will cost Libya millions of
dollars in lost revenue, the NOC said in a statement.
The outages come as the North African nation, which has
been mired in conflict since the 2011 ouster of Moammar Al
Qaddafi, once again faces a standoff between rival politicians.
Parliament swore in a new government last week to replace Prime
Minister Abdul Hamid Dbeibah’s administration. He’s resisting
any attempt to remove him from power, which analysts say could
reignite fighting.
On Thursday, the NOC closed six ports, blaming bad weather.
It shut Zawiya and Mellitah and the eastern terminals of Ras
Lanuf, Brega, Zuetina and Es Sider. The latter four reopened on
Sunday, according to people familiar with the matter.
Oun, the energy minister, who has been at odds with the
NOC, later said the port closures were unwarranted and a
“violation of national security.”
To view this story in Bloomberg click here:
https://blinks.bloomberg.com/news/stories/R8BQX4T0AFB4
------------------------------------------------
Bloomberg:
Libya’s oil production has fallen below 1
million barrels a day, as the OPEC member plunges deeper into
political crisis just as prices surge following Russia’s
invasion of Ukraine.
Output is down to 920,000 barrels daily, Oil Minister
Mohammed Oun said in a response to a query from Bloomberg. It
stood at roughly 1.2 million barrels on Wednesday.
State-controlled National Oil Corp. on Sunday halted
shipments from the ports of Zawiya and Mellitah after militias
shut down Sharara, the country’s biggest field, and El Feel. The
fields serve the two western terminals, which have been put
under force majeure, a clause in contracts allowing exports to
be suspended.
The drop marks another supply problem for Organization of
Petroleum Exporting Countries. Major importers, including the
U.S. and Japan, have called on the group to raise output quickly
to help bring down fuel prices. Crude has surged to more than
$115 a barrel in the wake of Russia’s attack.
The shutdown of the two fields will cost Libya millions of
dollars in lost revenue, the NOC said in a statement.
The outages come as the North African nation, which has
been mired in conflict since the 2011 ouster of Moammar Al
Qaddafi, once again faces a standoff between rival politicians.
Parliament swore in a new government last week to replace Prime
Minister Abdul Hamid Dbeibah’s administration. He’s resisting
any attempt to remove him from power, which analysts say could
reignite fighting.
On Thursday, the NOC closed six ports, blaming bad weather.
It shut Zawiya and Mellitah and the eastern terminals of Ras
Lanuf, Brega, Zuetina and Es Sider. The latter four reopened on
Sunday, according to people familiar with the matter.
Oun, the energy minister, who has been at odds with the
NOC, later said the port closures were unwarranted and a
“violation of national security.”
To view this story in Bloomberg click here:
https://blinks.bloomberg.com/news/stories/R8BQX4T0AFB4