Saudi Gazette - Geopolitical tension imperils oil stability:
"IS another oil shock just round the corner? If elements in the current global crude balance are viewed closely, the scenario is very much a possibility. The US Energy Information Administration reported last month that global supply disruptions reached 2.7 million barrels per day (bpd) in July. And analysts now say these outages have in fact risen since then.
Geopolitical situation in the Middle East is one major influence on the global crude markets. Middle East accounted for 35 percent of global oil production in the first quarter of this year, according to data from the International Energy Agency.
News pouring in from the entire region is disturbing. And this is impacting the crude sentiments. Libya's oil output has crashed to a near standstill over the past year as warlords and strikes have paralyzed the country, tightening the screws on global crude supply. Output has fallen from 1.4 million bpd to just 250,000 bpd after protesters shut oilfields and export ports. “We are currently witnessing the collapse of state in Libya, and the country is getting closer to local wars for oil revenues,” said the Swiss-based group Petromatrix."
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