Will Re-opening of Libyas Oil field put pressure on OPEC?
The El-feel oil field in Libya, after a period of two years freeze in operations, is all set to resume production. In order to pump crude, the oil field requires electricity which El-feel is dependent on oil supplied from Sharara Oil field, the largest field producing oil in Libya, to produce power. Sharara oil field is also not operating because of a valve closure.
For El-feel to start production, the Sharara oil field also needs to stat production.
A resume in production of El-Feel oil field will increase Libyas production which may put pressure on major oil producers including the OPEC that in the previous months agreed to curb down production in order to shore up the prices and prevent over production.
Now, with Libya planning to resume its production at El-Feel, how is the OPEC planning to stem a glut?