Libya Exports 700,000 Bpd in December


The International Energy Agency (IEA) predicted that the ceasefire in Libya will raise oil output to 700,000 bpd by December, from the current 300,000 bpd.

In its monthly report, the IEA added that global oil stocks, which rose during the height of the pandemic, are being steadily reduced. The Paris-based agency noted that the second wave of COVID-19 is slowing demand and will complicate efforts by producers to balance the market.

It added that the OPEC+ producers – OPEC members and others including Russia – plan to boost supply by 2 million bpd in January.

“There is only limited headroom for the market to absorb extra supply in the next few months,” the IEA noted. “Those wishing to bring about a tighter oil market, are looking at a moving target,” it declared.

OPEC+ producers are currently cutting output by 7.7 million bpd.

Libyan oil production almost entirely shut down in January, when energy exports were blockaded. However, Libyan National Army (LNA) Commander Khalifa Haftar said last month that he was lifting the blockade. The National Oil Corporation (NOC) restarted exports from fields and ports, where fighters were no longer based.

On 18 September, the LNA announced it had reached an agreement to resume oil production, with the Tripoli-based Government of National Accord (GNA). This deal was brokered by GNA Deputy Prime Minister, Ahmed Maiteeq.

Exports have resumed, and fields have begun pumping again. However, the NOC has said it will take a considerable time to restore output to pre-blockade levels. This is due to significant damage to the fields. Libyan oil production had reached 1.2m bpd, before the blockade.