Libyan Pipeline Explosion Sparks Oil Price Surge

An explosion at Libya's Al-Zouk oil pipeline, linking Mouradah basin fields to Es Sider terminal, triggered oil prices to reach May 2015 highs. The incident is projected to reduce crude output by 70,000 to 100,000 barrels per day.

Waha Oil Co., a joint venture involving Libya's NOC and US firms ConocoPhillips, Marathon Oil, and Hess, redirected production to the Samah line following the incident. Waha operates multiple fields and the pipeline network supplying crude to Es Sider.

S&P Global Platts reported Libya's crude production averaged 950,000 barrels per day in November, a figure that may decline due to the pipeline disruption. Oil futures rose as markets anticipated reduced output.