"We are producing about 100,000 to 130,000 barrels a day, we can easily up that to about 300,000 a day," Ali Tarhoni, the rebel representative responsible for economy, finance and oil, told a news conference. Libya was producing 1.69 million barrels a day of crude before the unrest, but that had virtually ground to a halt.
"The acknowledgement of the rebel body as legitimate by a regional power, plus the inference over the weekend that oil production from the embattled country may be marketed with Qatar's help, was perceived as bearish in the market," said Lawrence Eagles at JPMorgan Chase Bank. Eagles noted that Libyan oil ports were being recaptured by opposition forces, as NATO-commanded coalition air support tipped the balance of power in their favour. Oil prices were gaining support "from rising political tensions in Yemen and Syria as well as the ongoing civil war in Libya," analysts at research group JBC Energy said in a client note on Monday.
"Nevertheless, with the loss of most of Libya's production being greatly factored in a Brent price of $115 per barrel, and crude output in Yemen and Syria being of relatively minor importance to global oil markets, the bullish (price) impact of this was rather small."