With the apparent overthrow of the Muammar Gaddafi regime now all but a given, oil prices have declined on the expectation that Libya will soon increase production. As a member of OPEC Ã¢â‚¬â€œ the Organization of the Petroleum Exporting Countries – Libya shipped 1.6 million barrels of oil a day which accounted for about 2 percent of the global supply. During the conflict, production was cut-off during the worst of the fighting.
“A resolution of the conflict is modestly bearish for crude oil prices, but it is less likely that we will get a $10-$20 drop in price of crude,” Jason Schenker, president at Prestige Economics LLC in Austin, Texas, said in a note.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.