In a statement, Libya’s National Oil Corporation says ‘armed force’ entered el sharara oilfield, told employees to stop work.
The ation’s output has been deeply disrupted by the civil war over the past months, but there was news that the country’s largest field will slowly begin resuming production following a brokered deal between rival factions.
It will take months for the field to return to full capacity, but Libya’s return will eventually bring more barrels on the market.
Market implications
While this is a near term supporting conundrum for the market, despite the OPEC agreement over the weekend, the key risk for energy markets, however, remains a resumption of production growth in the US shale patch, as prices sharply recover closer towards break-even levels.
Nevertheless, WTI has popped on the headline and is extending its upside correction to a high of $38.76 so far with $39.50 in sight on a break of $38.80 structure.
- WTI Price Analysis: Bears looking to failure below 200-DMA
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