Daily Management Review

Bloomberg: Libya suspends oil supplies from two major terminals


Due to a deteriorating political crisis, Libya's state-owned oil corporation National Oil Corp. (NOC) has halted deliveries from two important eastern ports, Es Sider and Ras Lanuf, reported Bloomberg.

Due to local protests that prevent oil from being loaded onto tankers, the Waha Oil Company, which utilizes the Es Sider terminal, has suspended all production.

Pressure on the world oil market is increasing as a result of reduced Libyan supply. As a result of Russia's aggression  in Ukraine, oil prices have already increased by 50% this year, according to Bloomberg. On June 29, Brent oil reached a price of more than $119 a barrel.

Bloomberg believes that since mid-April, Libya's oil production has decreased by half, to roughly 600,000 barrels per day. In June, deliveries from the port of Ras Lanuf were just 1.8 million barrels as opposed to the 3 million barrels that were anticipated, the agency reported.

source: bloomberg.com