Libya’s Increased Production Pressure Crude Oil to Drop Below $40

  • Libya's oil production on Wednesday increased from 150,000 barrels in September to 560,000 barrels a day on Wednesday.
  • Data from the Energy Information Administration on Wednesday showed that as of the week of October 16, US crude oil supplies fell by 1 million barrels
  • Oil prices rose on Thursday, partly due to comments by Russian President Vladimir Putin.

The National Petroleum Corporation of Libya said on Friday that it expects to open up oil exports from Sider Port in the next few days, and Libya will increase its oil production to more than 1 million barrels per day within four weeks. Its production has been increasing over the last month.

Earlier, Reuters reported that the Libyan National Petroleum Company had lifted its force majeure on the transport commitments of Es Sider and Ras Lanuf ports, which means that these ports can fulfill their contractual obligations for oil exports.

Bloomberg quoted people familiar with the matter as saying that Libya’s oil production on Wednesday increased from 150,000 barrels in September to 560,000 barrels a day on Wednesday.

Oil Barrels

Robbie Fraser, a senior commodity analyst at Schneider Electric, said in a report on Friday that Libya is still not affected by the production cuts of the Organization of Petroleum Exporting Countries and its allies and “continues to make progress in restoring supply and demand.”

Steves said that Congress and the White House have been trying to “final a stimulus agreement before the election, and the influenza pandemic continues to intensify in most parts of Europe and the United States.

The re-imposed lockdown and travel restrictions have increased market demand. The pandemic’s resurrection is the current “primary issue. Any fiscal measures may only temporarily support demand, and may reduce demand to a lesser degree.

Oil prices rose on Thursday, partly due to comments by Russian President Vladimir Putin. Putin believes that global oil producers do not need to change their existing global supply agreements on Thursday, indicating that Russia is ready to continue its current production cuts.

Traders reacted little to Baker Hughes’ response to the US oil rigs on Friday. The number of oil rigs active in the US increased by 6 this week to 211, a five-week increase.

At the same time, when voters assessed the outcome of Thursday’s final presidential debate, traders were all paying attention to news related to the election.

Oi Pumps in the field.

Data from the Energy Information Administration on Wednesday showed that as of the week of October 16, US crude oil supplies fell by 1 million barrels, lower than expected, but gasoline inventories unexpectedly rose. Since travel disruption caused by COVID-19 earlier this year, weak demand for fuel has been a major concern in the oil market.

The environmental impact assessment report stated that in the past four weeks ending on October 16, implied demand for gasoline for cars fell by 8.7% from the same period last year.

Among other energy sources, gasoline fell 1.7% to $1.14 per gallon. Heating oil fell 0.8% in November to $1.15 per gallon, down 2.4% over the week. The September settlement price of natural gas was $2.97 per million British thermal units, down 1.2%. However, it has risen by 7.1% this week, and analysts have increased their cold weather forecasts in the coming weeks.

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George Mtimba

George clarifies how the news is changing the world, how world news trends affect you. Also, George is a professional journalist, a freelance news reporter and writer who is passionate with current world news.

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