News

Libyan rival government shuts down half of oil exports

Move will cut 800,000 barrels per day of supply

Libyan commander Khalifa Haftar blocked oil exports at ports under his control, cutting Libyan exports by 800,000 barrels per day.

The move is a power play ahead of a conference with Tripoli’s government that will be hosted by Angela Merkel in Berlin. He has so far refused to end his offensive and agree to peace and walked away from talks last week in Russia.

Recently, Turkey pledged support to Tripoli but cutting off exports will make it difficult to fund weapons purchases.

If exports remain cut off when markets re-open, expect a rise in oil prices. Total world production this year is about 102 million barrels per day and this would create a deficit, especially in Europe when Libya exports the vast majority of its crude.

ForexLive

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