With the apparent overthrow of the Muammar Gaddafi regime now all but a given, oil prices have declined on the expectation that Libya will soon increase production. As a member of OPEC – the Organization of the Petroleum Exporting Countries – Libya shipped 1.6 million barrels of oil a day which accounted for about 2 percent of the global supply. During the conflict, production was cut-off during the worst of the fighting.
“A resolution of the conflict is modestly bearish for crude oil prices, but it is less likely that we will get a $10-$20 drop in price of crude,” Jason Schenker, president at Prestige Economics LLC in Austin, Texas, said in a note.
Source: Reuters
