As BP Prepares To Evacuate Staff From A Burning Libya, Commodities Are Exploding

Tyler Durden's picture

Is this one of those "who could have possibly seen it coming" moments? As events in Libya overnight spiralled out of control, with dozens if not hundreds killed, the parliament buildng in Tripoli on fire, and output at one of the country's oil fields reported to have been stopped by a workers' strike, BP has said it will soon begin evacuating some of its personnel from the 9th largest producer of oil. And just to complete the total chaos, Iran warships are now going to pass the Suez on Tuesday instead of today, to the full glory of a fully open US stock market. The result: gold over $1,400; silver over $33.50; Crude front month over $93; Brent over $105; etc. Luckily, the US stock market is closed, meaning all this will be "priced in" by tomorrow, and the HFT levitation can resume tomorrow as if today never happened...

Some of the key overnight highlights:

Dozens of people were reported killed in Tripoli overnight as anti-government protests reached the Libyan capital for the first time and the building where the country's parliament meets was ablaze on Monday.

One of Muammar Gaddafi's sons said the veteran leader would fight the popular revolt that has shaken his 40-year rule until "the last man standing."

Anti-government protesters rallied in Tripoli's streets, tribal leaders spoke out against Gaddafi, and army units defected to the opposition in a revolt that has cost the lives of more than 200 people.

Output at one of the country's oil fields was reported to have been stopped by a workers' strike and some European oil companies withdrew expatriate workers and suspended operations.

Al Jazeera television quoted medical sources as saying 61 people had been killed in the latest protests in Tripoli.

It said security forces were looting banks and other government institutions in Tripoli and protesters had broken into several police stations and trashed them.

The building where the General People's Congress, or parliament, meets when it is in session in Tripoli was on fire on Monday morning, a Reuters reporter said.

The eastern city of Benghazi, where the protests began last week after the arrest of a human rights lawyer and where scores of people have been killed by security forces, was said by some residents to be effectively in the hands of the protesters.

Gaddafi's son Saif al-Islam Gaddafi appeared on national television in an attempt both to threaten and to calm people, saying the army would enforce security at any price to put down one of the bloodiest revolts to convulse the Arab world.

"We will keep fighting until the last man standing, even to the last woman standing.

Wagging a finger at the camera, he accused Libyan exiles of fomenting the violence. But he also promised dialogue on reforms and wage rises.

In an indication of disagreement inside Libya's ruling elite, Mohamed Bayou -- who until a month ago was chief government spokesman -- said the leadership was wrong to threaten violence against its opponents.

Bayou called on Saif al-Islam to start talks with the opposition.

On imminent evacuations:

BP  says it is "very likely" some of the oil company's employees in Libya will be evacuated in the coming days as the violent unrest in the north African country spreads.

A spokesman for BP PLC said the company is drawing up plans for evacuating staff "in the next couple of days."

Anti-government violence has spread from Libyan cities such as Benghazi to the capital, Tripoli. Protesters are clashing with police and demanding the ouster of longtime ruler Moammar Gadhafi.

BP has about 140 employees in the country, of which less than a third are expatriates, spokesman David Nicholas said.

After passing $105 briefly, Brent has since retreated to $104.30. What else can we say - disinflation.

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99er's picture

Futures are open...and NQ looks poised to fall.

HelluvaEngineer's picture

No doubt Ben and his cronies are frantically buying markets across the globe.  Will he be able to halt the selloff in time for our market open tomorrow morning?

Thomas's picture

I am Blithely very long silver. The obscure Hunt brother, Michael Hunt, is also long.

egdeh orez's picture

I can't believe no one has said this yet...

Silver, BITCHEZ!

Cyrano de Bivouac's picture

We should be saying...                       Dinty Moore beef stew, Bitchez!

naughtius maximus's picture

Bouillon bitchez! As in soup bouillon, chicken, beef and ham!!!

Broken_Trades's picture

Shell is also evac along with service companies.

Friend in country told me yesterday civilians are armed and running their own checkpoints in suburbs of Tripoli.



The Third Man's picture

Drudge is reporting that protesters in Libya are under attack from Libyan Air Force!

JR's picture

In a revolution the military can split; I wouldn’t be surprised if the military splits. Gaddafi’s son said last night there is going to be civil war…

tonyw's picture

Two fighter pilots have defected to Malta and claiming asylum, said they refused to bomb their own people.


JR's picture

Libya spokesmen today are saying that civil war is very unlikely since Libyans are not prone to fire on each other.  So far, much of the street violence has come from black African mercenaries brought in by the Gaddafis to attack the protesters.

The only difference is the military may be fighting within itself.  And there have even been reports of air attacks on military installations.

caconhma's picture

Libyan events are very troublesome for the USA, CIA, and Israel.

These events clearly show that masses are ready to take challenges and transform a "peaceful" revolution into a real one with lots of blood for the Arabs ruling elite and military establishment.

JR's picture

The situation is as simple as putting tinker toys together.

First you have the world’s superpower with a military budget larger than the military budgets of the next 14 nations in line, and next its two closest pals -- Israel which in reality dominates American foreign policy, and the corporate oil industry operated almost completely by investment bankers. 

Is there any doubt that dictatorships such as Gaddafi’s in Libya are armed to the teeth and allowed to pursue their objectives to enslave their peoples as long as they are “correct” on Israel and keep the BP oil flowing?

plongka10's picture

Must try harder on the BP smears.

JR's picture

More smears for BP?

Is this the biggest softball question in history? So many smears to choose, so little time and space.

Perhaps the sad tale of Iraqi citizens would suffice for a beginning :

You’ll recall that BP was part of the consortium that gained control over all of Iraqi oil in the 1930s.  The country was occupied by Britain, and British-installed puppet King Faisal was able to give most of the oil revenue to the companies along with complete control over decision making.

The terms, of course, outlasted the occupation and even though successive Iraqi governments tried to change the unfair terms, the struggle only gave Iraqis’ national control between 1972 and 1975. 

Perhaps you’ve heard the story of Tony Blair’s backstabbing of the British people to link arms with the Bushes and Colin Powell’s phony evidence to assault even again the world’s second largest oil reserve country.

The British Empire and its colonialism might have been collapsing and the Empire and the fortunes of BP might have been facing even more difficult times save for the hundreds of thousands of dead Iraqi villagers who seem to bring the worst memories of the Empire back into the headlines.

covert's picture

off topic:

someone asked the intelligent question essentually of:

when will the market top out?

as the market rises, the fed funds rate increases until it reached 3%, 6 to 8 months after, the market begins to fall.

historically, it is how it usually works. this pattern excludes covert market influences.


Twindrives's picture

Way to go Ben!   Your the man! 

SteveNYC's picture

"One of Muammar Gaddafi's sons said the veteran leader would fight the popular revolt that has shaken his 40-year rule until "the last man standing."

A very, very ill species has overcome this planet. I wonder how nature will deal with it.....

chubbar's picture


"In an old townhouse in East Boston an elderly stooped man is tending rare orchids in his shabby office. His Labrador Sally lies on the floor between stacks of academic papers watching him as he shuffles past.

This is Dr Gene Sharp the man now credited with the strategy behind the toppling of the Egyptian government.

Gene Sharp is the world's foremost expert on non-violent revolution. His work has been translated into more than 30 languages, his books slipped across borders and hidden from secret policemen all over the world."

amarshall's picture

There are no townhouses in East Boston.

Don Birnam's picture

You took the words right off my keyboard. 

sschu's picture

... non-violent revolution ....

And hundreds dead.




snowball777's picture

Compare and contrast Egypt et al with say...Le Terreur or a typical junta.

It's non-violent from the perspective of those petitioning for change of leadership.

breezer1's picture

those are not crows. 

jeff montanye's picture

they just look like them because they are still far away from us (but not as far as they once were).  cue neil: big birds flying across the sky, throwing shadows on our eyes.  however hope we're not completely helpless.

snowball777's picture

Sure they are...they're just flocking in swan formation! ;)

hugovanderbubble's picture

For Zero Hedge:

Tyler very Important try to find the last LAFICO /SWF report.... (companies will be affected by the Shutdown in Libya´s agreements"


Biggest Spanish Exposed companies to North Africa:








7.Tecnicas Reunidas


Banco Santander has been leading syndicate in many loans in the area....Risk of default evident....


Italy CDS rocketing


*Silver Rocketing 3 $ in just 10 hours....

*Gold at highs...

* Sell off coming guys...

indya's picture

Ohh boy..Liberate Libya for you

Monkey Craig's picture


Waha Concession 
Operator: Waha Oil Co., a wholly owned subsidiary of Libyan National Oil Corp.
Co-venturers: Libyan National Oil Corp. (59.2%), ConocoPhillips (16.3%), Marathon (16.3%), Hess (8.2%)

The Waha concession, made up of multiple concessions, currently produces approximately 350 gross MBOED and encompasses nearly 13 million gross acres in the Sirte Basin. The concessions are valid for an additional 21 to 25 years. Four major growth projects that are under development by the co-venturers include Faregh II, North Gialo, NC-98 and Dahra-Jofra.

The Axe's picture

Correct....silver and gold and oil   up up   but the HFT droids will take the US equity market higher...of course this is all good for US equity markets...even higher rates..higher oil  all good..It shows a improving economy......fucking joke...

Zero Govt's picture

you're depressed??? ..think of poor BP that bolted a mass-murderer from Scottish jail to get in with sweetners in Libya ...all those months 'investing' in corrupting the governing Labour Party gone to waste in the space of a week!!! 

snowball777's picture

I'm sure some of that blood money got into their economy somewhere.

Phlash's picture

The fact that Al Megrahi had nothing to do with it is academic I guess..

Zero Govt's picture


I suggest you take that up with the British courts. In the meantime he's still a convicted mass-murderer who was released for 'health reasons' (ill-health and impending death) yet remains in rude good health and still alive. 

His pitiful walk to the plane was a stark contrast to the more sprightly walk he made coming off it... weird one eh?

Snidley Whipsnae's picture

I see not one black swan coming over the horizon but a gaggle of them...oh wait, gaggle is geese...what is a flock of black swans called?

Snidley Whipsnae's picture

Coss55, TheyLive... I like your style. +++++

cossack55's picture

I'll have to concede to They Live (great movie BTW).  Much funnier thinking cap this AM.

SteveNYC's picture

Who would have thought "Rowdy" Roddy Piper would have starred in a movie as meaningful and prescient as "They Live"??? Quite amazing, if you haven't seen it, I recommend you do so.

RichardENixon's picture

Piper's a good actor. His "heel" performances in the WWF around the time of Wrestlemania I have never been equalled. Hilarious stuff.

thetruth's picture

haha, haven't heard of that guy in years!  underrated