LIBYA: Top Oil official says he expects oil prices to rise as high as 130 U.S. dollars a barrel

Record ID: 343961

  • Title: LIBYA: Top Oil official says he expects oil prices to rise as high as 130 U.S. dollars a barrel
  • Date: 3rd March 2011
  • Summary: TRIPOLI, LIBYA (MARCH 2, 2011) (REUTERS) SHOKRI GHANEM CHAIRMAN OF LIBYA'S NATIONAL OIL CORPORATION (NOC) (SOUNDBITE) (English) SHOKRI GHANEM CHAIRMAN OF LIBYA'S NATIONAL OIL CORPORATION (NOC) SAYING: "We are coordinating still the production from Daharega from all oilfields and towards the five exporting ports. So we are coordinating, we have operation room here, we are coordinating the production, everyone has the sense of that oil industry integrity is the most important thing and, you know, the word control is in a way meaningless because the same people are there. If they did not leave the same people are there.. the NOC is the one coordinating the production, we are still controlling, the ships go with our instruction." STATUE OF OIL RIG ON DESK (SOUNDBITE) (English) SHOKRI GHANEM CHAIRMAN OF LIBYA'S NATIONAL OIL CORPORATION (NOC) SAYING: "I don't speculate. I hope we are not reaching any stage where we are talking about using this as a political force. We hope that all things will be solved before we go into any complications of any matters." GREEN FLAG ON TABLE (SOUNDBITE) (English) SHOKRI GHANEM CHAIRMAN OF LIBYA'S NATIONAL OIL CORPORATION (NOC) SAYING: "It is not a big problem for us because our oil is still in the bank, it is underground in the country, underground. If we can produce it today well and fine. If we produce it tomorrow well and fine. We prefer not to make any kind of eruption in the world supply. We will, if we can, produce - otherwise the panic in the oil market, the international oil market; prices are up, people are worried about supply." INSIGNIA ON DESK (SOUNDBITE) (English) SHOKRI GHANEM CHAIRMAN OF LIBYA'S NATIONAL OIL CORPORATION (NOC) SAYING: "The oil market is very sensitive. Speculation is very important for the market. When you see that production in an important country went down you are afraid it will go down even more then here is speculation and prices I see them, if this continues, will go up and up and I wont be surprised if the prices reach as high as 130 U.S. dollars or more. (Q: when?) In the next month." GHANEM TALKING GHANEM TALKING TO JOURNALISTS
  • Embargoed: 18th March 2011 12:00
  • Keywords:
  • Location: Libya
  • Country: Libya
  • Topics: International Relations,Energy
  • Reuters ID: LVACIUOPNE93MKW7VQXBKIDHVN7U
  • Story Text: Libya is still in control of its oil fields, but further disruption could push crude prices above 130 U.S. dollars (USD) a barrel, the country's top oil official told Reuters on Wednesday (March 2).
    Shokri Ghanem, chairman of the country's National Oil Corporation (NOC), spoke as Libyan TV reported that forces loyal to Muammar Gaddafi attacked the major oil export terminal of Marsa El Brega - the first sign of a counter-offensive by Libya's leader in the rebel-controlled east.
    Arab television and rebel officers said earlier the Libyan military operation was successful but a spokesman for the opposition coalition in Benghazi said Gaddafi forces had fled.
    "We are coordinating still the production from Daharega from all oilfields and towards the five exporting ports. So we are coordinating, we have operation room here, we are coordinating the production, everyone has the sense of that oil industry integrity is the most important thing and, you know, the word control is in a way meaningless because the same people are there. If they did not leave the same people are there.. the NOC is the one coordinating the production, we are still controlling, the ships go with our instruction," said NOC Chairman Ghanem.
    Asked if Libya would ever consider using oil as a political weapon by cutting off supply to the rest of the world, for example, he said he hoped the tensions over the revolt in Libya do not reach the stage where the Tripoli government considers taking such measures.
    "I don't speculate. I hope we are not reaching any stage where we are talking about using this as a political force. We hope that all things will be solved before we go into any complications of any matters," Ghanem said, during an interview in Tripoli.
    He added, however, that Libya's troubles have created the country's worst energy crisis in decades. Output has dropped to 700,000-750,000 barrels per day mainly as the result of oil workers fleeing the chaos.
    Libya, the world's 12th largest oil exporter, was pumping 1.6 million bpd before the crisis.
    Ghanem said Libya had no intention of disrupting the world's oil supply.
    "It is not a big problem for us because our oil is still in the bank, it is underground in the country, underground. If we can produce it today well and fine. If we produce it tomorrow well and fine. We prefer not to make any kind of eruption in the world supply. We will, if we can, produce - otherwise the panic in the oil market, the international oil market; prices are up, people are worried about supply," he said.
    But they already have and cuts in supply and uncertainty about the future of Libya have pushed up prices to two-and-a-half year highs.
    Brent crude for April was up 49 cents at 115.89 USD a barrel at 1339 GMT against the recent peak of 119.79 USD hit on Feb. 24.
    Ghanem said he expected to see prices rise significantly higher if the unrest continued.
    "The oil market is very sensitive. Speculation is very important for the market. When you see that production in an important country went down you are afraid it will go down even more then here is speculation and prices I see them, if this continues, will go up and up and I wont be surprised if the prices reach as high as 130 U.S. dollars or more.. In the next month," he said.
    Oil markets will be watching closely to see if the departure of oil workers fearful of more violence in Libya - and an apparent fightback by forces loyal to Gaddafi - will further cut output in the world's 2th largest exporter.
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