Today's Coming Crisis Movie

Thursday, August 25, 2011

Libyan oil could take years to come back

If Libyan rebels are successful in their bid to oust the country's longtime dictator, Moammar Gadhafi, analysts say Libya's prized "light oil" should begin trickling back on the market within a few months.

But hopes of a quick resolution were quashed Tuesday as fighting continued.

Once producing 1.6 million to 1.8 million barrels a day, Libyan oil production was cut to near zero after civil war broke out in February. The cut, which represented only about 2% of global oil production, caused oil prices to spike and was the main reason several developed nations released oil from their strategic stockpiles earlier this summer.

While it appeared Libya was on the brink of a regime change Monday, Gadhafi said Tuesday that he's alive and well in Tripoli and won't leave Libya. more