LIBYA RESUMES OIL PRODUCTION. Stop rising prices

General Khalifa Haftar announces on Facebook that Libya under his control will resume oil production, which was interrupted months ago with the intention of strangling the weak government of Tripoli: "In light of the deteriorating living conditions of Libyan citizens, the state major of the armed forces of the LNA has decided to resume the production and export of oil, respecting all the conditions and measures that guarantee a fair distribution of income and that there is no use to sponsor terrorism ”. Without oil even the strong man of Benghazi finds himself in difficulty and in the end he has had to yield to the needs of economic reality.

The effects on the price were almost immediate, with Brent stopping its rise which began in the summer and bringing it well above $ 43 a barrel. for now the correction has been limited, with n for an instant at 42 immediately corrected, but there has been a stop in the growth of oil which is the target for the European price. Faced with an expected contraction in world demand of 8.4 million barrels per day, it could not be otherwise.

In the meantime, Saudi Arabia warns OPEC partners against "being smart" and breaking through the production quotas assigned without official communications. The organization is cutting 7.7 million barrels per day of production, but the whole system is based on the correct behavior of individual countries. Previously, these breakthroughs have led to very strong reactions, especially from Saudi Arabia itself, which in March had started a short, but devastating, energy war. Saudi warnings must therefore always be taken with great realism.

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The article LIBYA RESUMES OIL PRODUCTION. Stop the price growth comes from ScenariEconomici.it .

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This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-libia-riprende-la-produzione-di-petrolio-stop-alla-crescita-dei-prezzi/ on Mon, 21 Sep 2020 07:00:19 +0000.