Libyan protesters disrupt gas flows, El Feel oil field production resumes

Libyan protesters have temporarily disrupted gas flows to power plants and reduced production at the El Feel oil field, according to reports. The brief interruption affected the Mellitah complex, a critical component of Libya’s upstream oil and gas system. State oil firm NOC confirmed that operations have since resumed, suggesting a temporary rather than prolonged shutdown. This incident underscores Libya’s ongoing vulnerability to production interruptions due to political and social unrest, impacting its role as a significant OPEC supplier. The market implications appear to suggest potential supply constraints in Libya could influence WTI crude oil prices. Historically, disruptions in Libya’s oil production have had notable effects on global oil supply dynamics. The recent event is consistent with scenarios where supply interruptions contribute to upward pressure on prices, particularly if further instability arises. Current market data shows that the odds for WTI crude oil reaching higher price points in July 2026 remain low. The incident in Libya has not yet significantly shifted market probabilities, although it has highlighted the potential for supply-side volatility. Market p...