By: AGBI

Surging oil prices earned Libya bumper revenues in May, making the north African country a beneficiary of the Strait of Hormuz crisis caused by the Iran conflict.

Prices averaged $120 in April, nearly double their level before Iran effectively closed the strait, boosting Libya’s oil income to $3.4 billion in May, the state-owned National Oil Corporation reported this week.

Oil export earnings were $1.7 billion during January and February, a monthly average of about $850 million, according to the central bank of Libya (CBL).

Libya’s oil production totalled around 43 million barrels during May or just under 1.4 million barrels per day (bpd) in line with recent averages, the report said. The state’s share was around 32 million barrels.

Oil sales and royalties paid by foreign oil companies in Libya account for more than 90 percent of national income, according to the CBL.

About 70 percent of Libya’s crude is sold overseas to markets including Italy, Germany, Spain, France and China but exports have fluctuated due to disruptions at export terminals and oil fields caused by political instability.

Libya had 48 billion barrels of proven oil reserves as of 2020, the largest in Africa and nearly 3 percent of the global total.

Crude production peaked at 3.4 million bpd in 1970, averaged 1.6 million bpd between 2000 and 2010 but tumbled after a 2011 uprising toppled long-time leader Muammar Gaddafi.