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Oil price falls with Libyan regime

Monday, August 22, 2011 - 01:35

Aug. 22 - The price of oil has fallen as traders and investors anticipate a resumption of exports from OPEC member Libya after months of disruption. Andrew Potter reports.

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Long queues for petrol in Libya. But what appears to be the final days of the regime of Muammar Gaddafi could see the amount of oil exported by Libya increase. And in the hours after rebels stormed into the heart of Tripoli the price of oil worldwide has dropped. Brent crude fell $2 to $106 a barrel. Before Libya's civil war started six months ago the country exported 1.6 million barrels of oil a day. 85 percent of that went to Europe. But as oil terminals and production plants were engulfed in the fighting output fell to almost zero. Analysts think it won't take long for exports of around a million barrels a day to resume. Oil companies with facilities away from the areas of fighting will be able to respond quickest, according to Samuel Ciszuk from IHS. SOUNDBITE: SAMUEL CISZUK, SENIOR MIDDLE EAST & NORTH AFRICA ENERGY ANALYST, IHS, SAYING (English): "Companies with large production capacity in Libya, for instance ENI but also companies like Repsol and so on which have a lot of facilities in the south west as far as we know has escaped damage almost completely. They could very quickly see their production being ramped up to very close to total production before the war started." Libya once accounted for two percent of global oil exports, which depended on the stability brought by Gaddafi. For his regime the endgame has now begun. Who ends up in charge and how quicky they can bring peace is critical if Libya's oil exports are to return to their full potential. Andrew Potter, Reuters

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Oil price falls with Libyan regime

Monday, August 22, 2011 - 01:35