- There is much speculation in the commodity markets that there will be a resumption of Libyan crude oil exports.
- Subsequently, Brent prices have fallen to four-month lows.
- In spite of a daily oil production capacity of 1.6 million barrels per day, Libya is currently only producing around 250,000 barrels per day.
- Now, if Libya were to return to anywhere near to full production capacity, it would have serious repercussions on the supply and demand equilibrium of global crude oil.
Source: Bloomberg, OilPro