Violence in Libya weighs on oil markets

The ongoing violence in Libya has once again captured the attention of the global oil market, as the country continues to grapple with conflicts that have persisted for over seven years. The Libyan National Army, led by warlord Khalifa Haftar, is pushing westward in a bid to strengthen control over key oil ports, raising concerns about disruptions to oil production and export. The situation in Libya remains critical for the oil market, given its historical significance as a major producer of light and sweet crude that is in high demand by refineries in southern Europe. Mohammed Dawazah, Director of Geopolitics and Energy at Medley Global Advisors, provided insights on the implications of the ongoing unrest in Libya on oil markets. Despite the recent uptick in oil prices, driven in part by concerns over Libya, the outlook for the oil market remains uncertain amid geopolitical tensions and supply dynamics. While a return to triple-digit oil prices seems unlikely in the near term, the market is closely watching developments in Libya and other key oil-producing countries to gauge future price movements. The resilience of Libya's oil production amid the unrest will be a key factor in determining the trajectory of global oil prices in the coming months.