Oil prices down but future of Libya oil industry uncertain

Oil [1] prices declined sharply on Monday after rebels moved into the center of Tripoli [2] 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 [3] 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.