Oil prices down but future of Libya oil industry uncertain
Oil prices declined sharply on Monday after rebels moved into the center of Tripoli with expectations that Libyan oil exports could resume soon. Brent crude fell more than $3 to $105.15 a barrel, a drop of 3%, while US crude declined almost a dollar at $81.30, a 1% drop, Reuters reported.
There are conflicting estimates regarding Libya's ability to resume oil production. Some experts expect Libya could be pumping 1m barrels a day within months. However, pessimistic estimates claim it will take three years to rebuild Libya's oil capabilities. Before the war halted exports, Libya was pumping some 1.6m barrels a day – nearly 2% of global supply. Most of it flowed to European refiners.