The turmoil in Libya greatly disrupted that country’s substantial oil production and exports. Libya produced 1.6 million barrels of oil per day and exported 2 percent of global oil supplies.
Italian Foreign Minister Franco Frattini told his country’s state television that oil company Eni has returned to Libya and is considering restarting production.
Eni said in July that upon resolution of the Libyan conflict, it could be a year before the company again reaches full production capacity in that country.
A quick and stable resolution to the Libyan conflict could mean significant reductions in oil prices. “Certainly it’s our view, and I know it’s the view of some oil analysts that we talk to and respect, that curtailment of Libyan oil supplies is partly responsible for recent high levels of oil prices,” says Joel Prakken, chairman of St. Louis-based economic consulting firm Macroeconomic Advisers.