Observers fear that global energy markets will be affected by the consequences of stopping Libyan oil exports in the short term, despite the decline in Brent crude futures’ prices on Monday by 0.7% to $110.90 a barrel, driven by concerns about slowing demand in China, and investors resorting to taking profits of the gains made earlier.
The International Energy Agency has warned that nearly three million barrels per day of Russian oil could be shut down from May onwards due to sanctions, or buyers voluntarily abandon Russian shipments, with Interfax confirming a 7.5% drop in Russian oil production in April. In addition, Libyan exports, estimated at 1.2 million barrels per day, have stopped.
Protesters closed the Zueitina oil port and the El Feel field, prompting the National Oil Corporation to declare force majeure until further notice, amid fears that the closures would affect the national economy in light of a price hike.
