Libya oil production at 680,000 barrels per day

Oil field in LIbya. (Shutterstock)_
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Updated 30 October 2020

Libya oil production at 680,000 barrels per day

LONDON: Libyan oil production has reached 680,000 barrels per day (bpd), a Libyan oil source said on Thursday, more than a third higher than earlier this month, as the OPEC member seeks to revive its oil industry.

Libya’s National Oil Corp. (NOC) on Monday ended force majeure on the last facilities closed by an eight-month blockade of oil exports by eastern forces.

The blockade in January cut Libyan oil production to around 100,000 bpd from 1.2 million bpd.

The current output level marks a jump from around 500,000 bpd earlier this month.

The NOC said last week it expected oil production to rise to 1 million bpd in a few weeks’ time.

On Thursday, Repsol’s CEO said production at the Sharara oil field, Libya’s largest, is about 160,000 bpd, and expected to rise gradually to 300,000 bpd.

Libya’s growing output has weighed on prices as demand concerns are increased by government restrictions to contain a second wave of the new coronavirus.

Brent and US WTI crude futures were both down more than 5 percent on Thursday, extending another 5 percent loss the previous day.

Higher Libyan output and the weak demand outlook are expected to dominate talks at a meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies — a group known as OPEC+ — on Nov. 30 and Dec. 1.

OPEC+ is limiting production by 7.7 million bpd, but is expected to shave around 2 million bpd from the supply curbs from January.


US sanctions Chinese and Russian firms over Iran trade

Updated 29 November 2020

US sanctions Chinese and Russian firms over Iran trade

  • Four companies accused of ‘transferring sensitive technology and items’ to missile program

LONDON: The US has slapped economic sanctions on four Chinese and Russian companies that Washington claims helped to support Iran’s missile program.

The four were accused of “transferring sensitive technology and items to Iran’s missile program” and will be subject to restrictions on US government aid and their exports for two years, Secretary of State Mike Pompeo said in a statement.

The sanctions, imposed on Wednesday, were against two Chinese-based companies, Chengdu Best New Materials and Zibo Elim Trade, as well as Russia’s Nilco Group and joint stock company Elecon.

“These measures are part of our response to Iran’s malign activities,” said Pompeo. “These determinations underscore the continuing need for all countries to remain vigilant to efforts by Iran to advance its missile program. We will continue to work to impede Iran’s missile development efforts and use our sanctions authorities to spotlight the foreign suppliers, such as these entities in the PRC and Russia, that provide missile-related materials and technology to Iran.”

The Trump administration has ramped up sanctions on Tehran after withdrawing from the Iran nuclear deal in 2018.

Earlier this week, Pompeo met Kuwaiti Foreign Minister Sheikh Ahmad Nasser Al-Mohammad Al-Sabah, when the campaign of pressure on the Iranian regime was also discussed.

“I want to thank Kuwait for its support of the maximum pressure campaign. Together, we are denying Tehran money, resources, wealth, weapons with which they would be able to commit terror acts all across the region,” he said.

It is not yet clear how the incoming administration of Joe Biden will deal with Tehran and whether it wants to revive the nuclear deal which would be key reviving the country’s battered economy. The Iranian rial has lost about half of its value this year against the dollar, fueling inflation and deepening the damage to the economy.

Iran’s economy would grow as much as 4.4 percent next year if sanctions were lifted, the Institute of International Finance (IIF) said last week. 

The economy is expected to contract by about 6.1 percent in 2020 according to IIF estimates.