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Oil Prices to Dip as Libya Resumes Oil Production at Largest Field



Crude oil

Libya Rebels Agree to Resume Oil Production at Largest Field

Global oil prices to decline this week as Libya resumed oil production at Sharara field, the nation’s largest oil field, on Sunday following a resolution reached between the country’s rival sides to hold direct political and military talks in November.

Brent crude oil, against which Nigeria oil is priced, declined by 1.13 percent on Friday to $42.85 per barrel while the US West Texas Intermediate oil lost 1.43 percent to $40.60 per barrel.

Oil prices are expected to drop further ahead of the increase in global oil glut at a time most OPEC+ members are unlikely to cut additional production given the severity of COVID-19 on their budget.

However, the uncertainty surrounding the gulf of Mexico hurricane will continue to support prices in the meantime as oil rigs have started shutting down.

The United Nations Support Mission in Libya (UNSMIL) late on Saturday said neighbouring Tunisia would host “the first face-to-face meeting” of the Libyan Political Dialogue Forum (LPDF) “in early November, following preparatory virtual consultations”.

The forum’s aim is “to generate consensus on a unified governance framework and arrangements that will lead to the holding of national elections in the shortest possible timeframe”, it added.

UNSMIL said it “has made it a requirement for participants to the LPDF to recuse themselves from political and sovereign positions in any new executive arrangement … and to refrain from the use of hate speech and incitement to violence”.

Participants “will be drawn from key Libyan constituencies … and with a firm commitment to the meaningful participation of Libyan women and youth”, the statement added.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade experience in the global financial markets.