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Armed men stormed the National Oil Co. headquarters in Libya in an attack that killed two people, the state-run company said, the latest sign of unrest in the country. the big oil country, while the Iranian oil markets.
The Trump administration imposed new sanctions on Iran's crude, which come into effect in November, and have already scared away buyers, bottling their exports. Libya, which has seen a series of disruptions in oil production following this year's attacks, has appeared to recover more recently.
The attackers fired on the staff of the NOC offices and exploded explosives, the NOC said in a press release. Two officials of the oil company were killed and 10 others injured, the statement said. The president of the company, Mustafa Sanallah, present during the attack but evacuated safely, said that the incident demonstrated the "fragility of security" of the country. It shows that it is necessary to take additional measures to ensure that the recovery, "he said.
The headquarters of the NOC has already been invaded by competing militias. No organization claimed responsibility for the attack, but the Islamic State has already targeted the oil facilities. The group resurfaced in Libya after losing strongholds there, as well as in Iraq and Syria. Four months ago, the Islamic State claimed a suicide attack that killed 14 people in the Libyan Electoral Commission in central Tripoli.
The UN mission in Libya condemned the attack, saying that "the attack on the institution, which is Libya's main source of national wealth, is a blow to all Libyans".
The attack, coupled with disturbing concerns in Iran and Iraq, helped lift prices on Monday. Brent, the world benchmark, rose 1.09% to 77.67 dollars a barrel in the London market.
Intercontinental exchange
Monday afternoon. On the New York Mercantile Exchange, West Texas Intermediate futures rose 0.87% to $ 68.35 per barrel.
The Libyan attack recalls that there are "dangerous geopolitical issues with the risk of supply shocks in many places," said Helima Croft, chief commodities strategist at Canadian broker RBC. "For the White House, it's the perfect storm."
With Iran's sanctions pushing US oil prices to nearly $ 70 a barrel before the mid-term elections, the Trump administration has asked Saudi Arabia and the rest of the Organization of Exporting Countries to oil to increase their production. The White House has even considered the release of US strategic stocks, according to people close to the record.
Officials of Iran's national oil company expect crude oil shipments to drop to about 1.5 million barrels a day in September, compared to 2.3 million barrels a day in June, people said Monday. aware of the situation.
Libya, a supplier of high quality light crude oil, seemed to ease concerns when it increased production by more than a million barrels a day as a result of the reopening of fields previously blocked by militia groups. in 2017 and early 2018. in a dispute with a rogue general who closed his oil terminals in east Libya this summer as fighting between rival factions resumed last week in Tripoli.
Insecurity may hinder the continued investment of foreign companies operating in the country, including ConocoPhillips of the United States,
Eni
SpA, Spain
Repsol
HER
and France
Total
HER
.
Monday's incident shows that Libya has no way to reliably produce 1 million barrels a day, said Robin Mills, head of Middle East oil consultancy firm Qamar Energy. "The situation remains extremely volatile."
Libya fell into chaos after the 2011 civil war and remains divided between two rival governments. Rival militias clashed last week for control of Tripoli.
But the country's upheavals and sanctions against Iran are facing other growing challenges for global oil supplies. Production continues to decline in Venezuela. In Iraq, protesters have rallied in recent weeks near the oil fields, due to lack of jobs, water and electricity, which raises concerns about the impact of unrest on production.
"It's only a matter of time before Iraq becomes a problem," said Croft. If the problems with Iran get worse, "we go to the races and the prices could add 10 dollars a barrel," she added.
Write to Benoit Faucon at [email protected]
