Archive for the ‘Libya’ Category

Price of oil slumps on rising production in Libya – Business Day (registration)

Amsterdam Oil prices fell on Wednesday, weighed down by concerns about rising production from Libya feeding into an oversupplied market and a surprise increase in US petrol inventories.

Benchmark Brent crude futures were down 27 US cents at $51.60 a barrel at 9.50am GMT. US West Texas Intermediate crude futures were trading at $47.67, down 16c.

Production from Libyas Sharara oilfield, the conflict-riven countrys largest, has been see-sawing. The field remained shut on Wednesday, two Libyan oil sources said. The field had restarted at least once on Tuesday amid conflicting reports about whether it had reopened.

"The flood of news reports makes it clear that the situation in Libya is still chaotic and that conditions in the country are still far from normal," Commerzbank analysts wrote.

Sharara recently reached output of 280,000 barrels per day, but closed this week due to a pipeline blockade. Its production is key to Libyas oil output, which surged above 1-million barrels per day in late June, about four times its level in the middle of 2016.

Libyas rising output is a headache for oil cartel Opec, which together with nonOpec producers including Russia has pledged to cut about 1.8-million barrels per day of supplies between January 2017 and March 2018 in an attempt to remove a global glut.

Additionally, industry data released by the American Petroleum Institute showed on Tuesday that US petrol stocks rose by 1.4 million barrels in the week to August 18, compared with analysts expectations of a 3.5-million-barrel drop.

Jeffrey Halley, senior market analyst at futures brokerage Oanda, said rising US petrol inventories were "not a good sign during the US summer driving season".

Official inventory data from the US Energy Information Administration was due later on Wednesday.

Reuters

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Price of oil slumps on rising production in Libya - Business Day (registration)

Libya’s PM warns Europe will continue to face terror unless member states help stop migrants crossing the Mediterranean – The Sun

Faiez Serraj wants to tackle the migrant crisis as the number of arrivals in Italy is set to beat last year's record high

EUROPE will face an ever-growing terror threat unless member states helps Libya stem the tide of migrants crossing the Mediterranean, the countrys prime minister has warned.

Faiez Serraj head of the UN-backed unity government in Tripoli launched a fresh appeal to the EU to tackle the migrant crisis as the number of arrivals in Italy is set to beat last years record high with four months remaining.

AFP - Getty

He warned Europes leaders that failure to combat the problem will see an increasing number of terrorists crossing the Med posing as migrants.

Mr Serraj said Libyas southern border was open to tens of thousands of people who cross into the country un-vetted.

He told The Times: When migrants reach Europe, they will move freely. If, God forbid, there are terrorist elements among the migrants, a result of any incident will affect all of the EU.

His sober warning comes days after Barcelona became the latest European city to be hit by Islamic terrorists.

Nearly 100,000 have crossed the Med from Libya into Italy this year and there are an estimated 700,000 migrants in Libya.

Mr Serraj warned that Italys social and democratic fabric is under strain from the inflow and resentment is growing against the EU for its lack of action on the migrant crisis.

AP:Associated Press

Libya has issued the EU with a five-point plan to solve the crisis including help with policing its southern border.

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Libya's PM warns Europe will continue to face terror unless member states help stop migrants crossing the Mediterranean - The Sun

Oil Prices Fall on Concerns of Oversupply as Libyan Output Recovers – New York Times

Libya's rising output is a headache for the Organisation of the Petroleum Exporting Countries (OPEC), which together with non-OPEC producers including Russia has pledged to hold back around 1.8 million bpd of supplies between January this year and March 2018 to tighten supplies.

However, OPEC has so far fallen short off its pledge, in part due to Libya's strong output. The OPEC-member has been exempt from cuts.

"Sentiment towards oil remains bearish amid oversupply fears and the possible threat of OPEC's supply cut deal falling apart," said Lukman Otunuga, analyst at futures brokerage FXTM.

The next meeting of a ministerial committee of OPEC and non-OPEC states to discuss their production pact has been proposed for Sept. 22.

In the United States, crude inventories fell by 3.6 million barrels in the week to Aug. 18 to 465.6 million, industry group the American Petroleum Institute said Tuesday. However, gasoline stocks rose by 1.4 million barrels, compared with analyst expectations in a Reuters poll for a 643,000-barrel decline.

Jeffrey Halley, senior market analyst at futures brokerage OANDA said that the rising U.S. gasoline inventories were "not a good sign during the U.S. summer driving season" during which fuel demand tends to be high.

Official inventory data by the U.S. Energy Information Administration is due to be released late on Wednesday.

Meanwhile, Bernstein Research warned that low prices and ample supplies were resulting in low oil industry investment levels.

"We see (oil and gas)... order intake activity at almost the same low level as in 2016 ... For now, we remind investors that contract levels appear to still be insufficient to drive recovery in earnings," it said.

(Reporting by Henning Gloystein; Editing by Kenneth Maxwell and Joseph Radford)

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Oil Prices Fall on Concerns of Oversupply as Libyan Output Recovers - New York Times

Libya Key Oil Field Pipeline Starts Again After Shutdown – Bloomberg – Bloomberg

A Libyan security force has reopened a key oil pipeline, a step toward allowing the nations largest oil field to resume output after three days of disruptions.

The Petroleum Facilities Guard, which is tasked with securing oil installations, opened a valve that had been shut on the pipeline linking Libyas Sharara field to its Zawiya port, Wessam Al-Messmari, an office manager for the group, said by phone. Details as to the cause of the closure werent immediately clear.

Earlier Tuesday the state-run National Oil Corp. announced the restart of the Sharara field and the lifting of force majeure, a legal status protecting a party from liability if it cant fulfill a contract for reasons beyond its control, on crude exports from the Zawiya terminal. The NOC later removed the statement from its website.

Sharara has experienced several brief shutdowns caused by different groups this year. The oil field closed for two days in June due to a protest by workers. Pumping was interrupted for several hours earlier this month after armed protesters shut some facilities. Production was 230,000 barrels a day, a person familiar with the situation said at the time.

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Libya is trying to revive its oil production and exports in the midst of continuing political uncertainty. In July, crude production was at a four-year high and exports were the most in three years, according to data compiled by Bloomberg. While the expansion has helped Libyas oil-dependent economy, the Organization of Petroleum Exporting Countries is trying to cut global supplies. That effort has been weakened by recovering output by OPEC members Libya and Nigeria.

The estimated the value of lost oil production during the past three days is about $40 million, according to the NOC.

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Libya Key Oil Field Pipeline Starts Again After Shutdown - Bloomberg - Bloomberg

Exclusive: Armed group stopping migrant boats leaving Libya – Reuters

TUNIS/ROME (Reuters) - An armed group is stopping migrant boats from setting off across the Mediterranean from a city west of Tripoli that has been a springboard for people smugglers, causing a sudden drop in departures over the past month, sources in the area said.

The revelation throws new light on the sharp reduction in migrant arrivals from Italy, which took over from the Aegean route as the main focus of European concerns in the crisis.

Arrivals in Italy from North Africa, the main route for migration to Europe this year, dropped by more than 50 percent in July from a year earlier, and August arrivals so far are down even further. July and August are peak months for migrant boats because of favorable sea conditions.

Sources in Sabratha, 70 km (45 miles) west of the capital, said the sudden drop had been caused by a new force in the seaside city, which is preventing migrants from leaving, often by locking them up.

The group in Sabratha "works on the ground, the beach, to prevent the migrants leaving on boats towards Italy," said a civil society organizer from the city, speaking on condition of anonymity.

The group is made up of several hundred "civilians, policemen, army figures," he said. It is conducting a "very strong campaign" that was launched by a "former mafia boss", said a second Sabratha source who follows smuggling activity closely.

A third source with contacts in Libya, who also asked not to be named, said the Sabratha group was making "a significant effort to police the area".

The two Sabratha sources said the group was running a detention center for migrants who are turned back or taken from smugglers. One sent a picture of hundreds of migrants sitting in the sand in front of a high wall.

One of the sources said he thought the group was seeking legitimacy and financial support from Tripoli, where European states have tried to partner with a U.N.-backed Government of National Accord (GNA) to stem migrant flows. An official from the interior ministry's department for combating illegal migration in Sabratha did not respond to a request for comment.

It was not possible to contact the group, which the third source said was called Brigade 48, although other sources did not confirm this.

Italy has been trying to bolster the GNA's ability to stop people smuggling with cash, training and by sending a ship to help repair Tripoli's coastguard and navy vessels. Some 600,000 migrants have reached Italy by sea from North Africa since 2014, testing the country's ability to cope. More than 12,000 have died trying.

Most leave from Libya's western coast. Following a local backlash against smugglers in Zuwara in the west in 2015, Sabratha became the most frequently used departure point.

Italy wants to replicate a deal with Libya that the EU struck with Turkey last year, largely shutting down the migrant route through Greece and the Balkans.

With a national election looming during the first half of next year, the government in Rome is under pressure to show it can stop, or at least slow, migration.

But any progress in Libya is likely to be fragile, with the country in a state of conflict since Muammar Gaddafi was ousted six years ago. Rival governments are vying for power and local militias battle each other for territory and smuggling profits.

Last week Italy seized on the drop in arrivals, with Interior Minister Marco Minniti saying he saw a "light at the end of the tunnel".

Migrants rescued last week in the Mediterranean confirmed that conditions had changed in Sabratha, according to a spokesman at the International Organization for Migration, which interviewed migrants who arrived in Trapani, Sicily, on Saturday.

"They said that it was very difficult to depart from Sabratha. There are people stopping the boats before they set out, and if they get out to sea they're immediately sent back," said Flavio Di Giacomo, an IOM spokesman in Rome. Some migrants were also turned back before reaching Sabratha, he said.

The European Union's border control agency Frontex last week said "clashes in Sabratha" contributed to July's decline, also citing changeable weather and increased Libyan coastguard presence. The Sabratha sources were not aware of any clashes.

Another shift in recent weeks has been a clampdown on smuggling of Bangladeshi and North African migrants through Tripoli's Mitiga airport, after a militia that controlled the trade was forced out by a GNA-aligned armed group at the start of July, Libyan and European officials said.

But that, like a slowing of flows into Libya through Niger, might take time to take effect. Hundreds of thousands of migrants are already in Libya.

In Sabratha, the changes may not stick.

In the past, with no central authority to constrain them, smugglers have adapted and routes have shifted, as already is happening.

Last week smugglers moved departures to east of Tripoli, near Al Khoms, Chris Catrambone, co-founder of the Migrant Offshore Aid Station (MOAS) charity, told Reuters. Three large rubber boats set out from the east, he said, while only a small boat with 26 people was found west of Tripoli.

"The sea was like a lake last week and yet there were few boats," Catrambone said.

Everyone on the Phoenix, a rescue vessel operated by MOAS, was taken aback because it was so unusual, he said.

The GNA has little control over armed groups in western Libya, including the capital, and none over factions that control the east of the country.

The civil society member from Sabratha said the new group there might stop working if it does not receive support from Tripoli.

The power of the smuggling networks would not be broken until there was a "legitimate source of order" in Libya, said a senior diplomat, speaking of the change in Tripoli airport and comparing the situation to broken vase.

"In one corner we stuck it together, but everything else is in pieces."

Additional reporting by Ahmed Elumami; editing by Giles Elgood

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Exclusive: Armed group stopping migrant boats leaving Libya - Reuters