Despite having some disruptions in Libya’s oil market, the global market will not be affected, according to The Business Times.
Oil prices fell on January 21 on the notion that a well-supplied global market would be able to absorb disruptions that have caused halting Libya’s crude oil production after the closure of El Shahara and El Feel oilfields.
Brayton Tom, Senior Risk Manager for INTL FCStone’s energy team commented that “although [Libya’s barrels are] plentiful when around, have not been a reliable count,” adding that “at the end of the day spare capacity is abundant in the region.”
A spokesman for Libya’s National Oil Company (NOC) said that if exports were hindered for a long period of time, production will drop to 72,000 barrels per day (bbl/d) of oil.
It is worth noting that Brent LCOc1 futures settled down $0.20 at $64.59 a barrel, in addition, the US crude CLc1 fell by 0.3% to $58.38 per barrel.