Source: Bloomberg News, by Salma El Wardany
Libya is set to restart the last of its oil fields closed in January, with the state energy firm lifting force majeure on exports from the major deposit of El Feel on Monday.
Crude production from the western field of El Feel, or elephant in Arabic, will reach normal rates of around 70,000 barrels daily within a few days, the National Oil Corp. said. Force majeure is a clause in contracts allowing deliveries to be suspended.
Libya’s oil output has risen rapidly over the past six weeks after Khalifa Haftar, a commander in the OPEC member’s long-running civil war, lifted his blockade following a truce in fighting.
The speed of the recovery has taken traders by surprise and put pressure on oil prices, which have been hammered since the coronavirus spread around the world. Brent crude dropped 2.4% to $40.79 per barrel as of 6:54 a.m. in London, extending its loss this year to 38%.
The NOC expects Libya’s daily output to rise to rise above 1 million barrels in the next four weeks, from about 560,000 now and less than 100,000 at the start of September.