• Oil in global economy series: August OPEC report to show full production recovery in Libya

    Source: FxWire Pro - Commentary / 16 Aug 2018 09:26:31   America/New_York

    Expect August OPEC report to show that Libyan oil production is back on track from its sharp decline since May resulting from an increased violence in the country stemming from a battle to continue to take hold of the country’s oil production facilities. Several storage facilities were burned as a result of the conflict.

    As a result of the conflict, Libya’s oil production declined from a million barrels per day to 0.6 million barrels per day in May and continued there since. However, according to reports, as a deal between the opposition parties with the intervention of the French Government and President Macron was reached and the violence in the country subsided, the production will recover and many very well reach a million barrels per day in August.

    The increase in production, according to Libya’s oil ministry would be largely due to the fact that the production in the country’s biggest producing field is recovering. The ‘Sahara’ field, which has a capacity to pump 340,000 barrels per day of crude, was shut down in June after a militant group kidnapped four employees. Surrounding fields were also shut down to avoid more kidnappings.

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