(EnergyAsia, April 26 2011, Tuesday) — The absence of Libya’s 1.6 million b/d of oil production is lending strong support to the global markets and keeping prices well above US$100 a barrel, said BP Plc group chief economist Christof Ruhl.
Countries wracked by political instability and conflict often take years to return to normalcy, and in the case of oil producers, production will take years to recover, he said.
Libya, which exports 1.3 million b/d of oil before unrest began early this year, has virtually stopped production altogether as pro- and anti-government forces battle it out for control. Oil workers have long fled the country while vital infrastructure has been extensively damaged.
Other members of the Organisation of Petroleum Exporting Countries, especially Saudi Arabia, have failed to meet their promises to raise production to cover for the loss of Libyan crude.