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A huge oil producer is ramping up production — but there’s reason to remain cautious

Oil prices have cratered in recent days following a slew of news, including renewed oversupply fears from Libya.

Last week, the country’s Sharara and El Feel oilfields, which can pump 400,000 barrels per day, came back online.

The National Oil Company (NOC) said on Monday that Libya’s oil production jumped to 760,000 bpd — the highest level since December 2014. ChairmanMustafa Sanalla added that the NOC was working to boost production even further.

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Oil prices have cratered in recent days following a slew of news, including renewed oversupply fears from Libya.

Last week, the country’s Sharara and El Feel oilfields, which can pump 400,000 barrels per day, came back online.

The National Oil Company (NOC) said on Monday that Libya’s oil production jumped to 760,000 bpd — the highest level since December 2014. ChairmanMustafa Sanalla added that the NOC was working to boost production even further.

And finally, there have been reports that talks between leaders of the two largest rival factions, the head of the UN-backed government Fayez al-Sarraj and General Khalifa Haftar, have “made some progress.

Market sentiment and oil prices dove amid renewed oversupply fears given that these developments appear to be a positive sign for Libya’s oil sector.

However, there are reasons to remain cautious about a “sustainably strong” return of Libyan oil, said Helima Croft, the head of commodity strategy at RBC Capital Markets.

 

Read the whole story from Business Insider.

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The SOFREP News Team is a collective of professional military journalists. Brandon Tyler Webb is the SOFREP News Team's Editor-in-Chief. Guy D. McCardle is the SOFREP News Team's Managing Editor. Brandon and Guy both manage the SOFREP News Team.

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