Libyan Labor Unrest Delaying Oil Output


Libyan Oil Field
Libyan Oil Field

OPEC member Libya, producer of 1.5 percent of global oil supplies, was unable to commit to deliveries of crude oil to its customers in September due to strikes by workers at their major ports.

Oil production and supply continued normally until last June, but since then output has taken a nose dive, driving up the price of oil globally. In a statement released by the Libyan state held oil company, National Oil Corp, (NOC), it is no longer able to supply loading schedules for September, information which is normally available and sent to contract buyers of gasoline-rich crude by this time of the preceding month.

According to the chairman of the NOC, Nuri Berruien, the schedules for September “will be modified, not cancelled…because of the current sit-ins at ports and fields.”

The reason for the delay in the release of the schedules was explained in a statement by the NOC:

“Due to continuation of strikes in some Libyan terminals (Ras Lanuf, Es Sider, Zueitina, Marsa Al-Hariga) … we are not able to allocate any quantity of crude oil exports from those terminals during September 2013.”