Brussels 03.10.2020 Libya’s oil output has risen to 270,000 bpd as the OPEC member ramps up export activity following the easing of a blockade by eastern part of the country.
On October 1 Libya’s oil terminals at Hariga, Brega, and Zueitina were open for business and welcoming tankers to ship oil, although the biggest port and the terminal typically exporting crude from the largest oilfield in the country was still under strain.
The North African nation’s National Oil Corp said it expects production to rise to around 260,000 barrels per day, or bpd, by next week, up from some 100,000 bpd before the blockade of its oil ports and oilfields lifted by Haftar’s forces at the end of last week.
Total Libyan production could reach 550,000 bpd by the end of the year and nearly a million bpd by mid-2021. All that for a country that did not export a single barrel from January due to the civil war forced by Haftar. At its peak in 2008, Libya produced nearly 1.8 million bpd.
The shifting market dynamics could force OPEC back to the drawing board, to figure out what to do with all that unexpected new supply.
Emboldened by the steady price action of the past four months, OPEC decided to roll back its cuts by two million bpd from this month, taking a gamble that the market won’t crash, as economies continue to recover from the worst of the COVID-19 disruption. AbS’ warning to oil giants that they’ll be “ouching like hell” if they try to short the market was part of a calculated campaign to defend prices.
In the complex international economic context, and Libya ongoing political crisis, the Tobruk House of Representative (HoR) Speaker, Aguila Saleh, is expected to play a major role in state-building during the coming period, amid hopes of a political settlement to the long-time crisis in the country. Moreover might play a key role in concluding new trade agreements for oil exports, preventing overproduction, and subsequent turmoil for the oil markets.
Saleh has cemented his reputation as a political heavy-weight demonstrating openness to resolve the ongoing crisis in Libya. For the international community his rise will embody the transfer of political powers in Cyrenaica from military – Marshall Khalifa Haftar leading the Libyan National Army – to civilians. The increasing influence of the role of Saleh has reflected in the decision of the European Union Council to lift the individual sanction, allowing him to travel freely.
“The Council today decided to remove Aguila Saleh, speaker of the Tobruk-based House of Representatives, and Nuri Abu Sahmain, former president of the internationally unrecognised General National Congress of Libya, from the list of individuals and entities subject to restrictive measures in relation to the Libyan conflict.
“The two leading political figures had been subject to EU restrictive measures – a travel ban and an asset freeze – since 2016. The delisting of Speaker Saleh was agreed in light of his recent constructive engagement in support of a negotiated political solution to the Libyan crisis. The Council will continue to follow his behaviour closely, notably in relation to his support for the Berlin Process and for the efforts of the UN mission to Libya (UNSMIL). The delisting of Abu Sahmain was agreed based on the overall absence of any recent role in the Libyan political process.
“The EU welcomed the announcements made on 21 August by the president of the Presidency Council, Fayez al-Sarraj, and the speaker of the House of Representatives, Aguila Saleh, which accelerated promising developments in Libya and created a window of opportunity to move the Libyan transition forward towards completion through a Libyan-led and Libyan-owned political process.
“Today’s decision underlines the strategic use of the EU’s sanctions regime, following developments on the ground. Restrictive measures are intended to bring about a change in policy or activity by entities and individuals responsible for malign behaviour, and are of a proportionate, targeted and non-punitive nature. De-listing is appropriate wherever the criteria for listing are no longer met, as was the case here.
“The relevant legal acts, including the names of the persons and entities concerned, have been published in the Official Journal”.