In a major boost to the crude oil sector, oil costs came down rapidly yesterday after Libya announced that it will produce a large amount of oil barrels per day. Reports cite that National Oil Corporation (NOC) of Libya has lifted the force majeure on many of its key oil export terminals after its dispute with General Khalifa Haftar oil ports control was resolved.
Authentic sources cite that Trump had sent a strong-worded letter to General Khalifa after which he handed the ownership of the oil ports to Tripoli based NOC. Earlier, Khalifa had shutdown the oil ports stating that the Libyan Government was utilizing the oil proceeds to fund the armed groups. For the record, last month, rival armed groups had attacked Khalifa’s Libyan National Army (LNA) to wrest the control of major Libyan oil ports of Es Sider & Ras Lamuf from the latter.
Reportedly, the incident had led to the evacuation of staff & closure of these oil ports in Tripoli and declaration of force majeure on these major oil ports by NOC, thereby causing the loss of nearly 2, 40,000 bpd of crude oil production for the country.
Experts predict that the strategic move of NOC to lift force majeure will help it in increasing the crude oil production and help in bringing down the global crude oil costs.
Yesterday, OPEC stated that the global trade conflicts will adversely impact the crude oil sector, thereby reducing the demand for crude oil across the world. It further announced that the escalation of the trade tensions between countries such as the U.S. and China can negatively impact the capital investment, consumer spending, and capital flows further deteriorating the growth of the global crude oil industry.