Sunday 8 November 2020

Milestone for Libya as Oil Output Hits Million Barrels Daily - Bloomberg

Milestone for Libya as Oil Output Hits Million Barrels Daily - Bloomberg

Libya boosted oil production to more than 1 million barrels a day, a milestone for the North African country after civil war all but shut its energy industry.

The OPEC member, home to Africa’s largest crude reserves, ramped up production in the past six weeks amid a truce between rival military forces. It was pumping 800,000 barrels a day last week, and the state-run National Oil Corp. said Saturday that output now exceeds the million-barrel level. That’s the first time the landmark has been reached since early January.

Libya’s resurgence -- it was producing less than 100,000 barrels a day in early September -- has taken oil traders by surprise and weakened prices just as renewed coronavirus lockdowns in Europe and accelerating cases in the U.S. stifle energy use. Benchmark Brent crude has slumped 40% this year and fell 3.6% to $39.45 a barrel on Friday.

The speed of Libya’s oil recovery is a “huge achievement,” the NOC said in a statement. Still, the company said it faces “very big financial difficulties,” which will make it tough to repair dilapidated and damaged oil facilities.



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