Lybian Conflict - How It Is Affecting The Market

1. Lybian Conflict - How It Is Affecting The Market At the beginning of April, the Lybian capital of Tripoli was again marked by a resurgence in the fighting. The U.S. forces needed to pull out of the country and the market already started reacting with an uprise of oil prices. After all, Lybia is one of the most important OPEC producers. Led by the renegade General Khalifa Hifter, the rebel forces launched a surprise attack against the current Lybian governments. Just this attack may lead the country into a civil war again. According to Dave Ernsberger, global head of energy at S&P Global Platts, “The Libyan conflict coming back onto the front of the mind of the marketplace is actually very significant right now.” The reality is that this isn't the only OPEC producer to be in the middle of a crisis. We can't forget about Venezuela which oil production fall of a cliff. By taking a closer look at the Brent and U.S. West Texas Intermediate (WTI), they both had an increase of about 20% since the beginning of 2019. One interesting fact that you may not know about is the General holds American citizenship. The reality is that he was a former ally of Gadhafi. However, after spending a lot of years in the U.S. the General got back to Libya in 2011 and he joined the NATO offensive to take out the dictator. Find the Latest Stock Market News Today at Smart Money Gains. Libya's Oil Production The reality is that ever since the revolution in 2011, the country was never able to rebuild its energy industry. And now, with Hifter and his militias controlling an area that includes four major ports, they are controlling Libya's oil exports. There are already thousands of barrels in stake. According to Paul Horsnell, global head of commodities at Standard Chartered, “The immediate barrels under threat would be those from the southwest which come up through into the west of the country, so that would be El Shahara field, a

2. good 300,000, maybe up to 400,000 at immediate risk. But it’s the uncertainty of those supplies rather than the immediate changes in the flow.” How It Will Evolve According to the latest financial news, the oil output disruption depends on whether there are going to be new elections, if there may be a reconciliation as well as on how fighting around Tripoli evolves. According to Jeff Currie, global head of commodities at Goldman Sachs, “If you did lose that supply out of Libya right now, or a portion of it, most of the market would view it as being temporary as we’ve seen over the course of the last several years. “So it would create and reinforce a spot price move to the upside and that $75 potential-plus range, but it wouldn’t do anything at the back end.” For Latest Stock Market News, visit here! Libya Is A Crucial Supplier Of Light Sweet Crude While this shouldn't represent a problem to the U.S. since the country can replace with supplies, it is still a shock. One of the things that need to be said is that according to the latest stock market news, it seems that oil prices won't see any other way unless up. ********************