Libya does not affect oil prices much

The National Oil Corporation of Libya reports that it managed to increase production to 1 million barrels of oil per day. A week ago it was 800 thousand barrels, 3 weeks ago - 500 thousand barrels, and at the beginning of October - 270 thousand barrels, and at the beginning of September 2020 production in Libya did not exceed 100 thousand barrels per day. In addition, at the beginning of 2021, Libya plans to reach the production level of 1.3 million barrels per day.

How great is the negative impact of production growth in Libya on oil prices? Does it rule out any chance of oil price growth? Andrey Maslov, an analyst at FINAM, answered Fortrader magazine's question.

- Libya's share in global oil production is only a little over 1.2% (with production of 1 million barrels per day), but Libya has become an important factor in the global oil market because of the lack of demand due to the coronavirus. The negative impact at the moment is such that it has to be reckoned with, which is already enough to worry the players. As the epidemiological situation in the world improves and oil demand recovers, the role of oversupply from the country will diminish, as will its overall contribution to the oil market.

It is worth recalling that the National Oil Corporation of Libya also reported that the level of production may be reduced or completely suspended due to the obstruction of several parties to increase oil production and revitalize the national economy.

Oil price growth is less dependent on Libya, unlike the results of the fight against Covid-19 and the recovery of the world's key economies. Growth is quite possible even with increasing production in the country, the main thing is the recovery of demand for "black gold.