The first expansion in Libyan oil production in 10 months is poised to lower regional crude costs, boosting margins for European refiners that have been closing at the fastest rate in decades.
The holder of Africa’s largest crude reserves tripled supply to about 650,000 barrels a day in the three weeks to Jan. 13, according to the government. The production rate, 42 percent of the average for the past decade, is a signal to analysts at KBC Energy Economics and Petromatrix GmbH that competing grades may get cheaper. Libyan oil is categorized as light sweet because of its below-average sulfur content and lower density.
