Will conflict in Libya help oil prices to increase?

Will conflict in Libya help oil prices to increase?

Co-director of the American Institute for the Analysis of Global Security in the USA, Senior Energy Security Council adviser, Gal Luft, said today that oil prices may grow to $60-70 per a barrel during the year if the political conflict in Libya continues.

"While all producers want to see $65 per barrel as the most fair price, the oil market will be significantly influenced by the situation in Libya,’’ Trend cites him as saying.

The new Government of National Accord works in Libya since March 31st. It is trying to restore its integrity. At the end of the last year Libya extracted about 402,000 barrels of oil a day. In April, the volume fell to 345,000 barrels a day.

Luft also expressed confidence that OPEC does not intend to change its policy in the near future because Saudi Arabia will not change its strategy to oust American producers from the market.

Iran is also not restricting the level of production. "Iran needs to compensate for the losses in the volume of production [because of the sanctions], and the country does not consider itself obliged to accept the cartel’s instructions,’’ the American expert said.