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Libya Seeks to Restore its Shares in Global Energy Markets

Undersecretary of the Libyan Oil Ministry, Refaat Mohammad al-Abbar. (Asharq Al-Awsat)
Undersecretary of the Libyan Oil Ministry, Refaat Mohammad al-Abbar. (Asharq Al-Awsat)
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Libya Seeks to Restore its Shares in Global Energy Markets

Undersecretary of the Libyan Oil Ministry, Refaat Mohammad al-Abbar. (Asharq Al-Awsat)
Undersecretary of the Libyan Oil Ministry, Refaat Mohammad al-Abbar. (Asharq Al-Awsat)

Libya is seeking to restore its shares in the global oil and gas markets, after establishing production stability at 1.2 million barrels per day, announced Undersecretary of the Libyan Oil Ministry, Refaat Mohammad al-Abbar.

Speaking to Asharq Al-Awsat, Abbar indicated that the country is currently seeking to protect its shares in the global oil market and benefit from the price recovery.

The official noted that political disagreements delayed the necessary approvals for the sector's budgets, causing losses in billions.

Oil prices are currently trading above $80 per barrel, an over 60 percent increase since the beginning of the year, while gas prices have jumped more than 800 percent.

Libya is a member of OPEC and constantly cooperates with member states to achieve market stability, said the minister, adding that it seeks to be part of the solution of the global energy crisis and high prices, which affect producers in the long term, even if prices are recovering.

He announced that Libya aims to produce more than two million barrels per day during the following year and four million barrels per day in 2025, noting that these targets need about $12 billion in development, maintenance, and rehabilitation operations.

The official said the oil sector's major challenges are obtaining finances to pay the debts, carrying out maintenance, and reaching production targets.

“We are working with the National Oil Corporation to develop the productivity of the fields,” he stated, adding that the Ministry aims to maintain the stability of exports.

Moreover, the ministry wants to hold international oil and gas conferences during the coming period in Tripoli and Texas, the US, to attract foreign investments to the Libyan oil sector.

“We are making great efforts to overcome obstacles and attract foreign investments, which will certainly contribute to consolidating stability in the country and enhancing the efforts of the oil and gas sector to achieve production targets, develop reserves and create job opportunities,” stressed Abbar.

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Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
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Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)

Business activity in Saudi Arabia's non-oil sector accelerated to a four-month high in September, driven by strong demand, which led to faster growth in new orders. The Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI), adjusted for seasonal factors, rose to 56.3 points from 54.8 in August, marking the highest reading since May and further distancing itself from the 50.0 level that indicates growth.

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders, alongside challenges in supply. The improvement in business conditions contributed to a significant rise in employment opportunities, although difficulties in finding skilled workers led to a shortage in production capacity.

At the same time, concerns over increasing competition caused a decline in future output expectations. According to the PMI statement, inventories of production inputs remained in good condition, which encouraged some companies to reduce their purchasing efforts.

Growth was strong overall and widespread across all non-oil sectors under study. Dr. Naif Al-Ghaith, Senior Economist at Riyad Bank, said that the rise in Saudi Arabia's PMI points to a notable acceleration in the growth of the non-oil private sector, primarily driven by increased production and new orders, reflecting the sector’s expansionary activity.

Al-Ghaith added that companies responded to the rise in domestic demand, which plays a crucial role in reducing the Kingdom's reliance on oil revenues. The upward trend also indicates improved business confidence, pointing to a healthy environment for increased investment, job creation, and overall economic stability.

He emphasized that this growth in the non-oil sector is particularly important given the current context of reduced oil production and falling global oil prices. With oil revenues under pressure, the strong performance of the non-oil private sector acts as a buffer, helping mitigate the potential impact on the country's economic conditions.

Al-Ghaith continued, noting that diversifying income sources is essential to maintaining growth amid the volatility of oil markets. He explained that increased production levels not only enhance the competitiveness of Saudi companies but also encourage developments aimed at expanding the private sector's participation in the economy.

This shift, he said, provides a more stable foundation for long-term growth, making the economy less susceptible to oil price fluctuations.