Oil markets and Libya’s production outlook

Key takeaways:

– Libya’s golden era in the global oil markets is a distant memory, with the country’s influence on markets diminished by the ongoing political fragmentation. Libya’s oil output has struggled to regain its pre-war levels, hindered by above-ground challenges and not by a lack of resources.

– Given the North African economy’s heavy reliance on oil, various political factions have wielded oil as a tool to exert pressure and impose their desired outcomes.

– The ongoing tensions in the Middle East have a bigger influence on prices. While no supply disruptions have occurred thus far, the risk remains given that the region is the largest oil-producing area globally.