MORE LIBYAN OIL CAUSES HEADACHE FOR RUSSIANS MORE LIBYAN OIL CAUSES HEADACHE FOR RUSSIANS

29 October 2020

SOURCE: WIKIMEDIA COMMONS

MORE LIBYAN OIL CAUSES HEADACHE FOR RUSSIANS

With Africa’s largest proven oil reserves, Libya took a major step toward reviving its oil industry by reopening its biggest field, presenting a new headache for OPEC+. The alliance of major producers and its allies hopes to be able to boost production next year yet without price drops. The new wave of coronavirus and the risk of the economic slowdown are again on the table. Now Libya, a top oil producer, is coming back on track. Perhaps OPEC+ will not trim output limits by at least mid-2021. This is also true for Russia that sees more modest revenues from oil exports this year, a situation that poses a threat both to its oil companies and the federal budget.

Libya is gradually lifting force majeure on fields shut due to the civil war. As the fighting went on, Libyan oil exports shrank dramatically since January but now, it could boost to 1 million barrels per day in just a month. Libya’s National Oil Corporation (NOC) has lifted a force majeure on what it deemed secure oil ports and facilities. Unblocking oil