Libya’s crude oil production.

Catogory : Market Report

According to the EIA, Libya’s crude oil production increased by 45,000 bpd (barrels per day) or 4.8% to 1100,000 bpd in January 2018—compared to the previous month. Production increased by 287,000 bpd or 42.3% from a year ago.

Production was near a four-year high due to the restart of all the oilfields in September 2017. Libya’s crude oil production has more than doubled since January 2016.

The rise in Libya’s production has coincided with the rise in Brent and US crude oil prices. Brent and US oil prices have risen ~74% and ~68% since January 1, 2016.

The United States Brent Oil ETF (BNO) and the United States Oil ETF (USO) track Brent and US crude oil futures, respectively. BNO and USO have risen ~45% and ~12%, respectively, since January 1, 2016.

Libya was exempt from ongoing supply cuts due to economic issues. Libya’s oil production averaged 980,000 bpd in 2017, while it averaged 385,000 bpd in 2016.

Libya’s crude oil production has increased 286% since August 2016. Libya plans to increase its oil production in 2018 despite supply cuts. Any increase in Libya’s crude oil production could pressure oil prices. However, unplanned supply outages in Libya could support oil prices.