Libya Liberation Creates High Fuel Demand

 As liberation has spread across the country so to has the queues at fuel service stations.  The shortage has even dried up supplies in western Egypt as merchants bring fuel across the border to Libya.

Libya is suffering its worst fuel shortage since the uprising against Muammer Gaddafi broke out six months ago as the liberation of Tripoli pushes up demand.  The scarcity is particularly acute in Benghazi and other eastern cities, where long lines have formed in front of petrol stations over the past few days.

The rebel's government is stepping up fuel purchases on the international market to cover the surge in demand, with oil traders such as Vitol, Gunvor and Trafigura all delivering fuel in the past week. Eni has also sent a tanker.

Libya's oil production remains shut down and none of the country's refineries have yet restarted.  Benghazi-based officials hope to start pumping crude oil next week, although output is likely to be insufficient to meet local demand, which the International Energy Agency estimated before the start of the war at about 270,000 b/

PetrolWorld 050911  Source: FT