Libya is back in the oil business. At least for now. They re-opened a port and turned wells back on, and are adding 650,000 barrels of oil a day to the world’s supply. And that’s one reason oil prices have come down lately.
But what government is left is broke. The central bank is using up currency reserves just to keep the country running. And warring factions are splitting the nation in half.
This presents an interesting scenario. If Libya forms 2 governments, it may be unclear who will have legal authority to sell the oil. And the markets are already skittish. Europe has been burned by Libya before, and has not been stepping up as a buyer. More middle eastern turmoil equals more reason for American Oil from American Soil.