The price of oil has dropped to the lowest level since November on news that rebels have agreed to reopen oil ports in eastern Libya.
This is an important step forward, even though the two oil ports set to be reopened only have a limited capacity of around 180Kbbl/day.
The complexity of the conflict and the likelihood that a full normalisation could take about a year mean that a return of Libyan oil production to full capacity is not imminent.
An eventual return of Libyan oil to the market could increase downward pressure on the oil price depending on the reaction of Saudi Arabia.
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