Crude Oil, Maritime & Shipping
October 17, 2024
Libyan oil exports return to normal levels as Sharara crude flows restart
HIGHLIGHTS
Libya's weekly crude exports return to 1 million b/d
Sharara loadings resume from Zawiya port, first since Aug 3
Es Sider, Sarir crudes make up the bulk of Libyan exports
Libya's crude exports recovered to normal levels in the week to Oct. 16, according to tanker tracking data, as flows from a key western port finally restarted following the resolution of a feud between Libya’s rival regional authorities.
Export loadings of Libya's light, sweet crudes averaged 1.03 million b/d in the seven days to Oct. 1, on par with average crude export levels during the first half of the year, according to data from S&P Global Commodities at Sea.
A 600,000-barrel cargo of Sharara crude was loaded at the country's western Zawiya port Oct. 15 on route to Turkey, the data shows, marking the first time that the terminal has loaded Sharara crude since Aug. 3.
Libyan oil exports slumped to a trickle in early September after a deadlock between Libya's rival regional governments over control of the Central Bank. The impasse, which was resolved at the end of September, largely shuttered the country's oil production and elevated prices for alternative light, sweet crudes in the region. Crude loadings from Libya's other main oil ports have since restarted as production has ramped up during October.
Libya's mainstay Es Sider and Sarir crudes grade account for about 45% of the country's total oil exports while Sharara flows averaged about 110,000 b/d, or about 12% of exports, before the latest regional dispute, the shipping data shows. Platts, part of S&P Global Commodity Insights, assessed the light, sweet Es Sider crude grade at $72.205/b on an FOB basis Oct. 16, a $1.73/b discount to Dated Brent.
Libya’s Zawiya refinery also came back online in recent days after an electrical fault, sources told Commodity Insights Oct. 15. The plant, one of Libya’s largest, has two distillation units capable of processing 60,000 b/d each and runs on light sweet crude, primarily from the country's huge Sharara field.
Refined product imports to Libya rose to multi-year highs in September of 267,800 b/d, according to CAS data, as the Zawiya outage exacerbated a fuel crisis.
