Intensifying clashes in Libya likely to affect Singapore firms

Rising violence in Libya is throwing the market focus on oil, said OCBC.

Eastern Libya, where most of the unrest is concentrated, accounts for almost half of the country’s 1.8 million barrels a day of oil production, according to the IEA. The country is the 8th largest producers among those with a quota in the OPEC, and pumped 1.59 million barrels a day of oil in Jan, equivalent to about 8% of US consumption.

Meanwhile, the IEA head Tanaka said “the market is tight” and “if a small disruption happens, it may cause a spike”, so “if physical disruption happens, and if it’s significant, we have to mobilize”.

Singapore firms with exposure to Libya and the region include Hyflux, Boustead, CSE Global, SembCorp Industries, Keppel Corp, Olam International, and GMG Global, according to a BT report.