Gaddafi's Death - What Next for Libya & the impact on International oil price ?
After 42 years Gaddafi's brutal reign is over. So what can we expect from Libya now? The Gaddafi regime kept a very tight rein over the oil industry and along with international sanctions this meant that only 25% of the country's oil potential has been explored. Libya has the largest proven oil reserves in Africa with 42 billion barrels of oil and over 1.3 trillion cubic meters of natural gas, according to conservative estimates. Oil production has shrunk from just under 1.8 million barrels a day to under 100,000 and IEA officials estimate that Libya could be pumping around 1 million barrels a day by the end of 2012. Yet they also added that all estimates of Libya's future output are a "shot in the dark" as there are "many logistical, operational and security related challenges" to overcome before full production is restored.
Why didn't crude oil prices fall despite "Gaddafi 's death" ? when the same "Gaddafi" factor had once impacted by shooting the crude oil prices from $80 - 114.8$" ? As we always mention that the news.fundamentals & technicals are behind our strategy & news fundamentals / technicals alone wont lead the market direction ...So whats cooking ?? is there any other crisis or military coup poping out ?? or its just to frustrate the masse's sentiments ??
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