In May, Libya surprised the financial market participants with a huge increase in production. We have been following the Libya story for quite some months now. The increase was well expected by many who have been following the gradual reopening of terminals and pipes and we bet the OPEC’s monthly oil market report would once again surprise the market as Libyan oil production approaches four years high. Libya, along with Nigeria has been exempted from the OPEC and N-OPEC deal that aims to reduce supplies by 1.76 million barrels per day.

In the month of May, Libya produced oil at an average rate of 730,000 barrels per day, up by 178,200 barrels per day from April. On June 13th, Libyan National Oil Corporation (NOC) said, ““Total oil production in Libya as of today is 830,000 b/d, and we are targeting one million barrels by end of July 2017 as a result of the resumption of production from the Wintershall and linked Abouatiffel fields, as well as from 103 A and Nafoora”. Reports are circulating that the production in Libya has increased further and reached 935,000 barrels per day, which is close to its four-year high near a million barrels per day. It is now more likely that the production will reach a million barrels per day well before July end.