Libya’s oil flows rebound after ban on output, exports lifted

Verity Ratcliffe August 01, 2022

(Bloomberg) — Libya’s crude exports climbed after a ban on production and shipments was lifted in mid-July, a trend that may help cool fears about the OPEC member’s ability to supply global markets.

Exports averaged around 589,000 barrels a day in July, the lowest level since October 2020, according to tanker-tracking data monitored by Bloomberg. But more than twice as much oil was shipped in the second half of the month than in the first after a blockade was lifted July 15.

The government appointed a new chairman to run the national oil company, and officials reached an agreement with protesters and tribal leaders to reopen fields and export terminals largely shut for months. Output rebounded to 1.2 million barrels per day, Oil Minister Mohamed Oun said.

The Organization of Petroleum Exporting Countries and its allies will meet Wednesday to discuss whether to raise production in September as requested by US President Joe Biden. Disruptions to Libya’s oil industry further tightened global supplies, bolstering the case for other members to ramp up output.

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