AlwaysFree: Libya Triples Oil Production After Blockade Lifted

Libya’s oil production increased by three folds to 270,000 bpd last week after the months-long blockade in its oil infrastructure was lifted by the eastern-based Libyan National Army. Exports also nearly doubled to 200,000 bpd in September, according to tanker tracking data, following the reopening of the Zueitina, Marsa El Hariga, and Brega terminals. Assuming no new disruption, Libya’s exports are expected to increase even further in October. The return of Libyan oil supplies is expected to put additional downward pressure on oil prices which have been hit by weak demand outlook due to the spread of COVID-19 infections. However, some market participants are sceptical that conflict-torn Libya can sustain current production levels.