Sidra, Libya – The price of oil has been on a friendly and enjoyable slide back toward the pre-2000 pricing that some of us used to be accustomed to. Some of that decline in price may have to be on hold for a while, as the price of oil just went up a small amount after militants in Libya attacked an oil storage facility, setting part of it ablaze. As the US condemns the terrorist attacks, the Libyan government works hard to put the clamp on some militias operating in the area. The country has still been struggling with bandits, militias, and vigilantes since its revolution in the Arab Spring.
Militants Attack Libyan Oil Storage Causing Prices To Climb Slightly
The burning oil depot has not yet officially placed any type of strain on the fuel supply, but oil traders have speculated that the commotion will cause some decline in the country’s oil output until the situation can be fixed and the supply get caught back up to par. The country has been down on its oil output for a few years, but they should be capable of rebounding quickly from this unforeseen attack.
Libyan airstrikes have begun targeting areas believed to be the strongholds of the militants responsible for today’s fires. Crews have also managed to contain the fires at multiple storage facilities around the port.
Oil producers have been struggling to balance the falling price of crude oil with the supply needed to keep their businesses afloat. Major producers have been cautious not to lose market share, even at the sake of a reduced price. This type of competition has caused some of the drastic reduction in the value of oil, along with other international economic factors. Here in the United States the price of unleaded gasoline was trending towards the mid to upper $1 range, which has caused a welcomed increase in consumer spending in Q4 2014.
Militants Attack Libyan Oil Storage Causing Prices To Climb Slightly.