Oil Prices Fall After Gadhafi’s Death
- Posted on October 20, 2011 at 2:54pm by
Becket Adams
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The price of oil fell after the death of Libyan dictator Moammar Gadhafi, although it should take months for Libya’s oil industry to recover and for the full impact to be felt on world markets, according to recent reports from the Associated Press.
Oil fell $1.08 to $85.03 per barrel in New York on Thursday. At the pump, the price of gasoline was flat at about $3.47 a gallon.
Before the Libyan civil war, Libya had exported 1.5 million barrels of oil a day, or 2 percent of global demand. When Libya stopped exporting most of that oil eight months ago, it helped push the price of oil to $114 a barrel.
Oil has also become cheaper since then because of falling demand in a slowing global economy.
Libya sits atop Africa’s largest proven reserves of conventional crude. Before the civil war, it was the world’s 12th-largest exporter, mostly to Europe. Analysts estimate it is currently producing close to 400,000 barrels per day.
The major foreign oil firms that had operated in Libya before the start of the civil war, such as Italy‘s Eni SpA and Spain’s Repsol, are starting to return and assess the situation.
However, it could take some time before Libya returns to its pre-war output levels. As written about earlier on The Blaze:
First, and most obviously, security must be reestablished. A new government will have to be formed, the United Nations must lift their international sanctions and damaged oil fields and pipelines have to be repaired.
With intense back-and-forth fighting, the conflict in Libya has damaged pipelines and fields and forced out foreign oil engineers who were brought in to help export an estimated 1.5 million barrels every day. It may take years to correct the damage and to calm understandably wary investors.
[. . .]
although . . . some technicians [have been sent] back to the country to restart oil and natural gas operations . . . some analysts believe that restarting crude production could take several years.
In a research note, Eurasia Group said they expect Libya’s output could reach 600,000 barrels per day by the end of the year.
But that might be overoptimistic.
The Associated Press contributed to this story.
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Bernard
Posted on October 21, 2011 at 7:26pmOil prices fall after Qaddafi‘s death but who knows with the next set of murderous thugs more than willing to take his position and hold Europe ransom to Libya’s super sweet crude oil, I believe they will soar again.
Report Post »ColoradoMaverick
Posted on October 21, 2011 at 8:23amGadhafi is gone for good. Great, but has anyone behind the overthrow of this dictatorship given any thought to what might replace it? It’s a roll of the dice you know. With the Arab Spring and groups like Hamas and the Muslim Brotherhood, anything can happen. I certainly hope that the countries involved in this (NATO) have the balls to follow through and make sure this does not happen. I thought with Obama elected, we weren’t going to be involved in nation building anymore??
Report Post »hallkbrdz
Posted on October 21, 2011 at 4:58pmObama – Now that we got him, and oil prices are down – let’s up the tax to keep them closer to $4/gal. We can just say it is to pay for the war or something…
Sigh.
Report Post »JACKTHETOAD
Posted on October 21, 2011 at 6:46amGas prices will not go down with Obama in office. That’s what he, Chu (energy) and LaHood (transportation) have all stated already. They’re all for it.
Report Post »Libby Tarian
Posted on October 21, 2011 at 3:52amWhen the price of oil drops it does not seem to get to the pump. We are taxed because we smoke cigarettes, drink alcohol, chew gum, drive cars, own property, when will it stop? So many hidden taxes.
Report Post »Whirled Peas
Posted on October 20, 2011 at 10:31pmOil fell $1.08 to $85.03 per barrel in New York on Thursday. At the pump, the price of gasoline was flat at about $3.47 a gallon.
Report Post »***************************
I wonder if O’Mulligan could kill him five or six more times? I could use the relief on gas prices.
GroundZero is Nuclear Demolition x3
Posted on October 20, 2011 at 11:52pmPrices need to go up for those who continue to buy into this media spun farce. Libya has it better than any other country in Africa b/c of Gadhafi. This is just another MSM coupe, created in the mind of americans to help the NWO corporations steal sovereign resources.
Report Post »The standard of living in Lybia will go DOWN, shifting more wealth to wall street.
Suanniiq
Posted on October 20, 2011 at 10:28pmSo when will the gas prices go down?!?! It Just went over $3.90 p/g, and oil prices have been under $90.00 for months now…
Report Post »Elder
Posted on October 20, 2011 at 8:47pmQuestion? What happened to all the oil that Obama released from our reserves? It didn’t help bring down the cost one bit. PARK THE PLANE!!!
Report Post »mr.goodvibe
Posted on October 20, 2011 at 9:08pmIt had the same effect as his stimulus plan!
Report Post »Spector Anderson
Posted on October 20, 2011 at 9:39pmI remember people recently commenting on the gas price being a bargain at $3.19 a gallon. Wonder how much of a bargain we will be getting in the next cap and trade scheme without the option to barter for the price of air.
Report Post »americansfightingforcommonsense
Posted on October 21, 2011 at 9:36amThat wasn’t the PLAN. Remember, cut American’s oil production in the Gulf, cause wars and violence around the world, Pump out our Nation’s reserves, and then when America is under attack we won’t be able to supply oil or fuel to our soldiers stranding them around the world without any way for us to help them. George Soros, “America is the main road block for a New World Order”.
Report Post »KidCharlemagne
Posted on October 20, 2011 at 8:09pmGas ain’t gonna go down unless either Chairman Bernanke starts raising interest rates or Euro bonds go into a spiraling meltdown.
Report Post »Mopar 1969
Posted on October 20, 2011 at 7:18pmWay too much greed for gas prices to go down,heck my hair will grow back before that happens.
Report Post »And I dont see that happening anytime soon.
Scooter123
Posted on October 20, 2011 at 8:15pmGreed has almost nothing to do with the price of gasoline. The price of a barrel of oil and other commodities is set by what the market is willing to pay for it. The reason prices have skyrocketed over the last few years is because there are a lot more dollars chasing that supply. This is also how the arab spring began, people began protesting because they could not afford food and other commodities. prices went up because more dollars were chasing a fixed amount of available goods and peoples wages did not increase to reflect the amount of money printed. These are the consequences when large amounts of cash floods the market. Those printing the money understand this and use this power to create events like the arab spring because almost noone understands our monetary system and how it can be manipulated to effect the price of everything. If you want to know the true value of things we must return to the gold standard as its value cannot be manipulated.
Report Post »loriann12
Posted on October 20, 2011 at 9:21pmAfter Katrina when the discovered Americans were willing to pay over $3 at the pump, it will never go down much below that ever again. It would take a boycott, and too much runs on gas. Remember, “Under my plan, energy prices will neccessarily sky rocket.”
Report Post »Suanniiq
Posted on October 20, 2011 at 10:31pmThe Gas mafia needs to be weeded out like Gadhafi…
Report Post »ZengaPA65
Posted on October 20, 2011 at 6:47pmBut these aren’t really oil wars noooo…..
Report Post »jackact
Posted on October 20, 2011 at 6:37pmI guess Britain & France will whore themselves for the spoils.
Report Post »After all it was the British government that released the terrorist responsible for Lockerbie in exchange for BP oil leases in Libya.
Don’t forget your history!
TulsaYeeHaw
Posted on October 20, 2011 at 7:37pmBritain will colonize, the French will whore.
Report Post »lylejk
Posted on October 20, 2011 at 6:06pmEven more good news. As others already said, the gas prices will unfortunately artificially remain high since we have crazy folks running the government. Happy that this beast is dead, but now the real work will begin. It’s going to now get ugly over there; let’s hope my assessment is wrong. :)
Report Post »mr.goodvibe
Posted on October 20, 2011 at 9:10pmLets also hope our soldiers don’t stick around. We must never forget about them.
Report Post »Anton Phibes
Posted on October 20, 2011 at 5:58pmGas wont go down though. Too much money being made. The economy is dead because commodity big shots and OPEC have raised the price of gas and food so much that there simply isnt anything left to spend after base survival…esp. if you are lower middle class. Add tot hat a President who prints dollars like Iraqis print dinars and the end of the equation is disastrous.
I am sure it will affect upper middle class as well eventually—if it isnt already. But as for my family: every dollar we earn is already required by the energy company that heats our home, the gas station that fills our cars, the grocery store, or the stinking public school system that cries poor every year and raises school fees, property taxes, and school district income taxes. There aint nothin’ left after they get theirs. Thats whats wrong with the economy— and why people cant spend money on other stuff. They dont have any. At least I dont. Neither do any of my friends. Kudos to those that do……
Report Post »Tyler520
Posted on October 20, 2011 at 5:34pmI’ll care when I see lower prices at the gas pump
Report Post »paulusmaximus
Posted on October 20, 2011 at 5:32pmIf you have watched the price of oil the past month you know the $1.08 drop isn’t anything by Monday it could be back up!
Report Post »sillyfreshness
Posted on October 20, 2011 at 5:17pmAmerica has its own self sustaining energy in this country if we would switch off oil and use LP (also called autogas) to fuel cars. It burns cleaner and would support American jobs instead of Middle Eastern/African jobs. The US government refuses, however. Deep down we want to remain on gasoline for some strange reason.
Report Post »encinom
Posted on October 20, 2011 at 5:36pmpropane (auto gas) is still a product of oil, like gasoline, so how does this help? Also the majority of car son the road are not designed for propane, so again how does this help?
Report Post »jb.kibs
Posted on October 20, 2011 at 7:38pmnatural gas is not oil… there are natural gas pockets… same as there are oil pockets, gold veins… etc. they are produced similarly but aren’t the same… CNG is not oil…
Report Post »TulsaYeeHaw
Posted on October 20, 2011 at 7:39pmPropane is natural gas, not oil. But many vehicles can be converted, and with excellent results. There are alot of CNG vehicles here in tulsa.
Report Post »TexasWax
Posted on October 20, 2011 at 8:03pmEnicom
LOL Wow I mean like WOW!!!!! Natural Gas is a byproduct of OIL, like processed from OIL? Betcha the conversion (in most cases is a differrent carb) is significantly less than making battery powerd cars.
Report Post »fatjack
Posted on October 20, 2011 at 11:44pmencinom
Posted on October 20, 2011 at 5:36pm
propane (auto gas) is still a product of oil, like gasoline, so how does this help? Also the majority of car son the road are not designed for propane, so again how does this help?
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Teach us.
BTW where is your hot sister monicen, I haven’t seen her lately.
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