Islamist Attack Libya’s Largest Oil Terminal

Libyan oil production has fallen below 300,000 barrels a day after Islamist militants shifted attacks to energy facilities including the country’s largest oil export terminal.

Output is the lowest since May and down at least 65 percent from a recent high of 850,000 barrels a day in October following the assault on the Es Sider terminal, according to the Energy Aspects estimate. Libya holds Africa’s largest oil reserves.

The fighting last week marked a turning point in the unrest that followed Muammar Qaddafi’s 42-year rule. All the factions, including the Islamist militia coalition known as Libya Dawn, had committed to spare the energy industry that provides 80 percent of public spending.

Market Reaction

The extended fighting helped bring a temporary halt to the slump in prices. Brent crude rose as much as 98 cents on 28 December to $60.43 a barrel before settling down 2.6 percent at $57.88, the lowest since May 2009. The global benchmark lost 9 cents to $57.79 a barrel on the London-based ICE Futures Europe exchange.