Bloomberg News

Citi Sees Libya October Daily Oil Output at 400,000 Barrels

September 28, 2011

(Updates with analyst’s comment from second paragraph.)

Sept. 28 (Bloomberg) -- Libyan crude production may reach 400,000 barrels a day next month as fields and ports resume operations after armed conflict blocked output and exports for much of the year, Citigroup Inc. analysts said.

The country’s transitional government is seeking to speed up production, and the good condition of its wells and transportation links may help, analysts including Edward Morse, the bank’s global commodities research head, said today.

Overall production will recover next year to about 1 million barrels of crude a day, or 75 percent of the amount Libya exported before hostilities broke out in February against the government of Muammar Qaddafi, according to a presentation prepared for a Citigroup Global Markets conference call.

Libya’s National Transitional Council is working to establish its authority in the capital Tripoli following a seven-month rebellion. The hostilities cut global oil production by 1.5 percent, though Libya accounted for 10 percent of the world’s output of “high-quality” light sweet crude, Morse said.

Light, sweet crude is easier for refiners to process than heavier, more viscous oils that may contain more impurities. Light crudes generally command a higher price than heavier oils.

--Editors: Bruce Stanley, Rob Verdonck

To contact the reporters on this story: Anthony DiPaola in Dubai at adipaola@bloomberg.net.

To contact the editor responsible for this story: Stephen Voss on sev@bloomberg.net.


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