The recent killing of Libyan leader Muammar Gaddafi is likely to lead to high demand for oil due to a possible swift resumption of Libyan oil production, thus causing lower oil prices, according to a Kuwaiti oil expert. Oil prices are anticipated to dwindle away on a gradual basis following Gaddafi's death as Libya is expected to be back to normal soon, Mohammad Al-Shatti told KUNA.
Libya's current oil production stands at 400,000 barrels per day (bpd) compared to 1.6 million bpd ahead of the uprising in this north African country, he said. This figure is expected to hike up to 500,000 bpd by the end of this year and to one million bpd by March 2012, he added.
Libya can resume its full oil production capacity on the long run as several Libyan oil facilities have been damaged during the uprising, the Kuwaiti oil expert pointed out. However, he considered the global oil market as balanced, believing that the focus is now on global economic indications.