The resumption of oil production in Libya grabbed the strong attention of OPEC, as a document described by Reuters as being secretly circulated, stated that OPEC was concerned about the repercussions of the second wave of Coronavirus, coinciding with the increase in Libyan production, which reached by the end of last week half a million barrels per day.
The leaked OPEC document suggested that oil production in Libya would reach higher than the levels of one million barrels per day within months, expressing its fear that this may cause a surplus in global production by 200K barrels per day, which may lower oil prices next year.
The reports of the leading energy agency, Bloomberg, reinforced OPEC’s concerns, as it said in its latest report on Libya that the production of the Sharara field rose in the past hours to about 110,000 barrels per day, while the average exports during the first half of October were about 350.000 barrels per day.
In its report, Bloomberg indicated that JPMORGAN CHASE & CO expected oil production in Libya to reach “one million barrels per day” by next March, in case the stability in the oil fields and ports region continues, which matches what was stated in the OPEC document.
It questioned whether the return of Libyan oil production to levels higher than one million barrels per day in early 2021 will disrupt global oil prices, which may put it on the accounts list of the organization’s plans to reduce production in the future to avoid any price drop.