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Did This Backroom Deal Just Bust OPEC’s Control On Oil Prices?

zerohedge.com / by Tyler Durden / Jun 16, 2017 2:51 PM

Authored by Dave Forest via OilPrice.com,

Libya has been one of the biggest x-factors in the global crude markets the past year. With on-again, off-again production in this key nation alternately supporting and suppressing prices.

But news this week suggests things are looking up for Libya’s crude output.

And down for global oil markets.

Reuters reported that Libya’s National Oil Company has struck a backroom deal with German energy developer Wintershall, which will see that firm restart a major chunk of oil production in the east of the country.

The Wintershall assets covered by the deal have production potential of 160,000 b/d. But have been shut-in since earlier this year after a dispute broke out between the company and the Libyan government over an alleged $900 million in unpaid taxes.

The two parties however, said Tuesday they have reached an “interim arrangement” to end the dispute. Opening the door for Wintershall’s significant swath of production to return to market.

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