Libya's oil exports have rebounded much faster than expected and will exceed pre-Arab Spring levels as soon as April, plugging a crucial gap in world crude supply as the Iranian crisis comes to the boil. The Libyan state oil company NOC said it will export almost 1.4m barrels a day (b/d) next month as key oil fields come back on stream.
The announcement came after Saudi Arabia said it had boosted output to a near record level of 9.87m b/d in January and stood ready to cover any shortfall as European sanctions against Iran bite deeper.
"I want to assure you that there is no shortage of supply in the market," said Saudi oil minister Ali al-Naimi. "Oil prices today are unjustifiable on a supply and demand basis. We really don’t understand why the prices are behaving the way they are."
Brent crude for April slipped more than a dollar to $123.55 a barrel in London, as traders discounted an immediate supply crunch.
It recovered later to almost $126 after France and Germany said they opposed tapping strategic petroleum reserves for now. Read More
