The brief abduction of Libyan Prime Minister Ali Zeidan complicates
further the resumption of the country's oil output and increases the likelihood
of future production relapses affecting 2014 oil-market balances, Barclays says
in a note.
"Libyan oil production has recovered to around 700,000 bbl/day
from near zero levels but remains far off its 1.6 million bbl/day capacity
before the civil war and the 1.4 million bbl/day averaged over H1 this
year," Barclays analysts say. The bulk of the restarts have been at oil
fields in the west and output in the east remains restricted because of
unresolved regional grievances.
Unrest at oil facilities lays bare the
government's lack of control, the bank says. Nymex crude is down 27 cents at
$102.74/bbl. Brent is down 25 cents at $111.55/bbl.