Peace in Libya Is Signaling More Pain in the Oil Market: Chart
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If there was any need for another reason to be bearish on oil, the peace deal brokered by the United Nations in Libya may be it.
The accord signed last week between the two rival factions in the North African country may pave the way for shuttered oil fields and export terminals to be reopened. While Morgan Stanley says it’s skeptical of a sustained recovery, an increase in output by 400-600 thousand barrels a day in addition to more supply from Iran may delay any re-balancing in the oil market until 2017, according to the bank.