Monday, March 13, 2017

Oil: "Clashes In Libya Force Oilfield Shutdowns, Force Majeure Possible"

One of the supports for oil prices, not huge but important, was that thing Britain, France and the U.S., leading from behind, did in Libya a few years ago. The country hasn't been the same since.
From Oilprice:
Continued fighting between the Libyan National Army and the Benghazi Defense Brigades may cause the declaration of force majeure at two oil export terminals, a board member of the National Oil Corporation, Jadallah Al-Okli, said, also confirming that the fighting had forced the shutdown of several oil fields, which shaved off 80,000 bpd from the country’s recovering production.

Clashes between the House of Representatives-affiliated LNA and the BDB, which has declared no affiliations, broke out earlier this month, focusing on two of the terminals, Es Sider and Ras Lanuf, which the LNA took over last September, along with the other two main oil export points in the Oil Crescent, Zueitina, and Brega.

The LNA then handed control of the ports to the NOC, and exports of crude were resumed for the first time in about two years, during which the terminals were controlled by the Petroleum Facilities Guard—an armed group affiliated with the UN-backed Libyan government, which, used its control of the terminals to extract money from various authorities. Now, it seems that Ras Lanuf and Es Sider are back in the hands of the PFG....MORE