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Libya economy set for recovery in 2021 but faces continued challenges, World Bank says

“The Libyan people have gone through so many tribulations. The security and political environments have seen signs of improvement lately. The road ahead will not be smooth, but it provides hope for peace, stability, and development, he added. The North African country relies on hydrocarbons export for over 60 per cent of aggregate economic output and over 90 per cent of both fiscal revenue and merchandise exports. However, a nearly-year long blockade of Libya s exports curtailed development of its economy during a particularly challenging year due to the Covid-19 pandemic. The Washington-based lender described the blockade as debilitating for Libya s acutely undiversified economy , whose performance last year was the worst in recent record .

Crude prices go up as production from Libya falls

Daily Times April 21, 2021 Crude oil prices edged up on Tuesday after production from Libya fell below one million barrels per day for the first time in several months. At 1325 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, was trading at $67.51 a barrel after gaining 0.69 percent. Likewise, the US West Texas Intermediate (WTI) crude futures gained 0.43 percent to reach $63.65 a barrel. The price for Opec Basket was recorded at $65.21 a barrel with 1.13 percent increase, Arab Light was available at $67.04 a barrel with 1.31 percent increase while price of Russian Sokol increased 1.28 percent to reach $67.33 a barrel. Libya’s National Oil Corporation declared a force majeure on exports from Hariga Port in the east. It said the closure was due to the central bank’s refusal to release the budget needed for the oil sector “for long months”.

US oil surges above $64 on anniversary of sub-zero plunge

Oil prices are on the rise again following a prolonged period of consolidation - driven by rising growth expectations, said Milan Cutkovic, market analyst at Axi. The next leg higher seems imminent, with $68 the next major level to watch in WTI. The US benchmark has undergone a significant turnaround as the world economy is poised for a stronger but uneven recovery this year. Global economic output is forecast at 6 per cent this year following a 3.3 per cent contraction in 2020 as Covid-19 disrupted trade, hindered travel and caused lockdowns worldwide. Exactly a year ago, WTI collapsed to below zero, briefly trading at negative $40 per barrel, as US crude storage neared capacity.

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