UN: More than 140,000 displaced by Libya conflict/ Oil Slips as Libyan Production Returns

From [HERE] More than 140,000 people have been internally displaced in Libya [press release] as a result of the country's rapidly deteriorating security situation, the UN said Monday. Renewed fighting between feuding militias has caused a new wave of displacement, particularly in the western outskirts of Tripoli and the eastern city of Benghazi, and has heightened the humanitarian needs of those communities affected by the conflict. A convoy sent by the UN World Food Programme (WFP) and the UN Refugee Agency (UNHCR) [official websites] arrived in western Libya on Saturday, delivering a supply of food and humanitarian supplies to families there. Assistance, according to WFP Regional Director for the Middle East, North Africa, Central Asia and East Europe Mohamed Diab, will be increased in line with what is needed after the WFP assesses the situation there. Access to areas for food and supply delivery is often complicated by blocked roads, and many of the displaced are living in schools and host communities. [MORE]

Oil reserves in Libya are the largest in Africa and the fifth largest in the world with 76.4 billion barrels (12.15×10⁹ m³) as of 2010. Oil production was 3.1 million barrels per day (490×10³ m³/d) as of 2010, giving Libya 77 years of reserves at current production rates if no new reserves were to be found.[1] Libya is considered a highly attractive oil area due to its low cost of oil production (as low as $1 per barrel at some fields), and proximity to European markets. [MORE]

From [HERE] Oil prices fell Monday after Libya restarted production at its largest oil field, bringing more barrels to a market already brimming with crude and adding to concerns about weak economic growth and demand.

Light, sweet crude for October delivery ended the day down 89 cents, or 1%, at $91.52 a barrel on the New York Mercantile Exchange. The October contract expired at the close of trading Monday, and the volume in the market moved into the November contract, which slipped 78 cents to $90.87 a barrel. It was the fourth straight losing session for the U.S. benchmark contract. The global Brent benchmark fell $1.42, or 1.4%, to $96.97 a barrel.

Both contracts have been on a three-month slide as global supplies mount, with the U.S., Libya and Iraq ramping up production. Each benchmark is down about 15%, and Brent has fallen in 12 of the past 16 trading sessions.

"The market is still very [supply] heavy," said Phil Flynn, an account executive with brokerage Price Futures Group in Chicago. "There's not a lot of reasons to be" bullish.

Futures chopped around break-even at the start of trading but slipped after U.S. existing home sales data disappointed, with the first contraction in five months. That came after China's finance minister made remarks that dashed hopes the country would carry out a round of monetary stimulus to recharge its growth rate. China is the world's second-largest oil consumer behind the U.S., and weak demand there recently has weighed on the market.

Also Monday, Libya said it restarted production at its Shahara oil field, just days after a rocket attack shut the facility as warring rebel factions vied for control. The government said it restored production of about 70,000 barrels on Monday, more than one-fifth of its full capacity of 340,000 barrels a day.