One side effect from the chaos in Libya following the armed conflict in 2011 has been constant disruptions of the country’s considerable supplies to the global oil market. But while its output remains just a fraction of what it was under Qaddafi, it does seem to be rebounding recently, as Bloomberg reports:
Libya pumped 300,000 barrels a day in June, down 73 percent from a year earlier, according to a Bloomberg survey of oil companies, producers and analysts. Output has risen to 350,000 barrels a day, National Oil Corp. spokesman Mohamed Elharari said by phone yesterday.
This recent rebound notwithstanding, risks abound for supply disruptions around the world, as a recent IEA report pointed out. Reuters reports:
“Supply risks in the Middle East and North Africa, not least in Iraq and Libya, remain extraordinarily high,” the IEA said. “Oil prices remain historically high and there is no sign of a turning of the tide just yet.”
That’s a dour outlook, but things would be a whole lot worse if not for the American shale boom. The fact is, fracking isn’t just powering a U.S. economic recovery; it’s also stabilizing international oil prices. You’re welcome, world.