prices fell around 5% on Monday, partly due to the potential
return of Libyan barrels to a market that's already grappling
with the prospect of collapsing demand from rising coronavirus
Libya produced around 1.2 million bpd - over 1% of global
production - before the blockade, which slashed the OPEC
member's output to around 100,000 bpd.
NOC, in a statement late on Monday, said it is preparing to
resume exports from "secure ports" with oil tankers expected to
begin arriving from Wednesday to load crude in storage over the
next 72 hours.
As an initial step, exports are set to resume from the Marsa El
Hariga and Brega oil terminals, it said.
The Marlin Shikoku tanker is making its way to Hariga where it
is expected to load a cargo for trader Unipec, according to
shipping data and traders.
Eastern Libyan commander Khalifa Haftar said last week his
forces would lift their eight-month blockade of oil exports.
NOC insists it will only resume oil operations at facilities
devoid of military presence.
Nearly a decade after rebel fighters backed by NATO air strikes
overthrew dictator Muammar Gaddafi, Libya remains in chaos, with
no central government.
The unrest has battered its oil industry, slashing production
capacity down from 1.6 million bpd.
Goldman Sachs said Libya's return should not derail the oil
market's recovery, with an upside risk to production likely to
be offset by higher compliance with production cuts from other
"We see both logistical and political risks to a fast and
sustainable increase in production," the bank said. It expects a
400,000 bpd increase in Libyan production by December.
The Organization of the Petroleum Exporting Countries (OPEC) and
allies led by Russia, are closely watching the Libya situation,
waiting to see if this time Libya's return to the oil market is
sustainable, sources told Reuters.
(Additional reporting by Nayera Abdallah in Cairo; Editing by
Chris Reese and David Evans)
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