Starting this month, Crude futures prices on both sides of the northern region and Atlantic will see decline as supply fears began to ease, after Libya government declared an end to an oil crisis that has slashed exports from the OPEC member.
Libya’s acting Prime Minister Abdullah al-Thinni announced last week that his government had reached a deal with a rebel leader controlling oil ports in the handover of the last two terminals, potentially making an extra 500,000 barrels per day (bpd) of crude available for export.
Deal reached with rebels to handover seized oil ports brings to an ending year-long blockade that crippled country’s petroleum industry.
“We have successfully reached an agreement to solve the oil crisis. We have received today Ras Lanuf and Es Sider oil ports, thankfully without the use of force.” Thinni said at Ras Lanuf terminal in eastern Libya.”I officially declare this is the end of the oil crisis.” He added.
The premier said that the ports had been reclaimed after an agreement was reached with Ibrahim Jathran-led fighters who had seized the terminals almost a year ago to demand more regional autonomy.
This move will act as a major breakthrough for the North African state, whose coffers have been hit hard by oil revenue losses, and it is widely expected that it could make about 500,000 more barrels a day of crude available for export from the two ports.
This closure of the cease fire would also see an end to a crisis that included failed negotiations, threats to bombard rebels, and even an attempt by Jathran to dispatch an oil tanker that was later boarded on the high seas by U.S. commandos.
In 2011, Libya’s four decades presidency of Moammar Gadhafi’s one-man rule was brought to an end after chaos erupted all over Libya’s vast oil resources, leading to triggers for conflict between rival brigades of former rebels and allied political factions resulting to a civil war.