Africa Oil & Gas: Libya loses 850,000 bpd because of port outages

global-oil-glut-set-to-worsen-as-nigeria-libya-fields-restart

The internal battle for control of Libya’s main crude oil export terminals has led to the National Oil Corp. to declare force majeure on loadings from the Zueitina and Hariga ports on Monday, leading to the disruption of 850,000 bpd. The sudden outage sent shockwaves through the oil market.

“Oil bulls seem to have returned after Libya suspended oil exports from two key ports,” Hussein Sayed, chief market strategist at futures brokerage FXTM, told Reuters.

“If Libya’s oil doesn’t return fast to the market it will be an important test to OPEC’s spare capacity, especially given that output from Venezuela and Iran is expected to fall significantly in the next couple of months,” he added.

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