Before the Libyan civil war begun, the North African country was OPEC's 13th crude oil exporter. More than a million barrels left the refineries, daily. Most of them were transported to Europe. And even European countries built their own refineries on Libyan ground. The Italian concern ENI, for instance, exported 280,000 barrels, today, however, barely 50,000 barrels. When the fights against Gaddafi started end of February, the crude oil prices hiked extremely fast. In April, Brent crude reached the maximum of $126. However, after rebels entered Tripoli these days, new hopes started to grow.
First of all, just look at the crude prices. Brent crude fell 1.8% to $105, and the American light oil WTI remained around $83.5 per barrel.
Secondly: "We can count on slower economic growth in US and Europe, and that is going to impact demand for oil," Victor Shum of Purvin and Gertz told the BBC. “
Indeed, if the war ends, Europe will import Libyan oil again, which is a very profitable trade.
However, it is still a question of time how fast the Libyan refineries and plants will be recovered and when the refinery process will actually start.
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