Libya Declares Force Majeure On Oil Exports Of 1.5 Million Barrels A Day

Tyler Durden's picture

Reuters reports that Libya has just declared force majeure on its oil exports. As a reminder, Libya exports (under non-force majerue conditions) about 1.5 million barrels per day. That's a lot of barrels, especially for Italy which relies on 425,000 barrels a day from Libya to keep its economy going.

From the EIA:

With domestic consumption of 280,000 bbl/d in 2009, Libya
had estimated net exports (including all liquids) of 1.5 million bbl/d.
According to 2009 official trade data as reported to the Global Trade Atlas,
the vast majority of Libyan oil exports are sold to European countries
like Italy (425,000 bbl/d), Germany (178,000 bbl/d), France (133,000
bbl/d), and Spain (115,000). With the lifting of sanctions against Libya in 2004, the United States has increased its imports of Libyan oil. According to EIA estimates, the United States imported an average of 80,000 bbl/d from Libya in 2009, up from 56,000 bbl/d in 2005 but, as a result of the U.S. economic downturn and subsequent decline in oil demand, 2009 levels were below 2007 highs of 117,000 bbl/d.
Libya's oil exports by destination 2009

Libyan oil is generally light (high API gravity) and sweet (low
sulfur content). The country's nine export grades have API gravities
that range from 26.0o to 43.3o. While the lighter, sweeter grades are generally sold to Europe, the heavier crude oils are often exported to Asian markets.

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UninterestedObserver's picture

This must be bullish Leo said said so

Malcolm Tucker's picture

Report: Ukranian mercenaries flying the MiG's that are bombing Tripoli and support from Italian Mafia:

http://fedupmontrealer.blogspot.com/2011/02/report-italian-mafia-and-ukranian.html

Problem Is's picture

+1... Nice news tip, thanks.

StychoKiller's picture

LOL-LMFAO!! In that first pic, everyone besides Kaddafi and the older black guy to his left are looking down at their shoes:  "We don't know this guy!"

Black guy to cameraman:  "I hate you for roping me into this pic!"

Kaddafi:  "Does it look like I put mousse on my hair?"

The clothes do make the man -- but a good comb could only help this guy! :>D

TeamAmerica's picture

Looks like the Italians will need to venture back into Africa.   Didn't work out so well for them last time...

tj3's picture

...but this time, (...), teh Italians, we be liberators; not the empire of a madman's foolish, foolish desire. Not that they would want too but like the USA those that think they know (delicious unbridled power) would push the indescribable need.

Ted K's picture

uh, can I get a blow-up pic of that ass????

tj3's picture

Wish I could oblige you.

dick cheneys ghost's picture

British Prime Minister says "West was wrong to back dictators"

 

http://nakedempire.wordpress.com/

Hephasteus's picture

Nothing a complete slaughter of the IMF and cia and MI6 wouldn't fix.

Hephasteus's picture

Haha. Department of Energy 205.254.135.7 wants in my computer.

the not so mighty maximiza's picture

will this lead too 5.00 usd per gallon?

Mr Lennon Hendrix's picture

Rearity < KING DORRAR

King Dorrar....rures.

Cognitive Dissonance's picture

I suspect we shall be seeing a lot of "force majeure" over the next few years. Right up until they confiscate Gold because a force majeure took down the dollar.

http://en.wikipedia.org/wiki/Force_majeure

Oh regional Indian's picture

Years CD? Surely you jest.

Months I can buy, but 2011 seems to be th eyear the dollear died.

ORI

Cognitive Dissonance's picture

I suspect this will play out in stages and over a much longer period of time that you think. When so many people, corporations and nations depend upon any one thing, that "thing" will be supported long past its expiration date out of desperation.

The dollar has "value" only in relation to other currencies. And a currency is another word for a belief system. When our belief system is challenged, rarely do we just let go. Instead we invest even more blood, sweat and tears into it until it collapses into a heap of smoking ruin. History tells us modern man is no different in his attempt to support a failed belief system. I usually bet on history rhyming.

Calmyourself's picture

Exactly the point I made months back.  All the stops will be pulled out, every last one to support this ponzi.  If you think markets make no sense now you have seen nothing yet.

Problem Is's picture

So, the Bernank's pants are on fire... he just doesn't smell the smoke yet?

A Texan's picture

Yeah, but a confiscation of gold under whatever reasoning would run smack into Rule 308.  Further impediments would be offered by Rules 223, 243, 762x39, 30-06, etc.  Force majeure ain't so simple any more, not when some 90 million people know of the above-mentioned rules.

Cognitive Dissonance's picture

I understand what you are saying. But what makes you think "rules" and "law" will be respected when desperation becomes all they can feel and people are cornered?

I think our biggest blind spot is in thinking that the rule of law, long ago abandoned for the upper class, will finally be respected precisely when it will hurt them the most. They are playing by grade school playground rules.

Make me. I dare you to make me.

A Texan's picture

Uh, there's no actual "Rule 308."  It is an expression used to convey the idea that millions of Americans, armed with .308 caliber rifles (among many others) can trump any law or Supreme Court ruling.  We will do it because we have the means at hand to do so.  Rule 308 is the American version of the British Rule 303:  http://www.urbandictionary.com/define.php?term=rule%20303

TeamAmerica's picture

I suspect you misinterpret the meaning of Force Majeure.   It has nothing to do with confiscating anything.

As for the various rules you cite, guys like me respond with rule XM-25 subsection 25mm, which clearly states that you can't hide behind stuff anymore.  I win. :-)

A Texan's picture

I understand quite well what "Force Majeure" means.  However, the topic of confiscations of PMs came up, so it is that to which I responded.

 

I also understand what you're saying about Rule XM-25, but you need to understand that there are relatively few copies of that Rule, and they are not so easy to transport to and from distant places where they are needed, whereas Rule 308 and its brethren exist in literally millions of copies and in every part of the country.  I'll give you an example of how a predecessor to Rule 308 was used to defeat a predecessor of Rule XM-25...I believe it was Rule PanzerMark3:

Josif Tito was the leader of the largest Yugoslav partisan army during WW2.  Once he was asked by someone in the press how his men, armed only with old and outdated versions of Rule 7.92, Section 8mm could possibly hope to override the then-new Rule PanzerMark3, as enforced by the German government.  His response is a classic:  "Well, when the Germans have to put aside their new Rule PanzerMark3 to take a piss, my men will pick up their old Rule 7.92, Section 8mm and throw it at them, at high velocity."  [Takes thumb out of cheek].

 

Seriously, quantity has a quality all its own.  Millions of armed Americans, already distrustful enough of government to have armed themselves and bought PMs to protect their life's labors from the predations of the government will not take too kindly to having those PMs (and the guns, in the bargain) stripped away from them.  I don't know how an armed force of maybe 500,000 combat effectives (and that is probably a gross overestimate) can take on 10 or 20 or 50 million people spread out all over its logistical tail across a continent.  Especially when many were trained quite well by Uncle and will go after those giving the orders (or voting to fund those orders).  It won't, in any conceivable scenario, be pretty - but if upwards of 500,000 people decide to seriously resist, including taking the battle to the fed.gov, there's simply no way that the .gov wins, period.  It'll inflict massive casualties, to be sure, but it will lose.  Kind of like Quackdaffy, armed with modern weapons including an Air Force is about to lose to a bunch of stinky, half-toothless shoe-throwers.

arkady's picture

Interesting that a force majeure clause exists in these contracts, I wonder if that is the cae for all Middle East exporters.

Cognitive Dissonance's picture

The clause exists in all (international) contracts if the lawyers that approved them are worth more than two cents. It's the great escape clause. Hell, this applies domestically and personally as well. Just look at your car and home insurance contracts for example.

TeamAmerica's picture

I thought LaDouche was dead!   At least we have his demise to look forward to.

Cardinal Fang's picture

Now THAT is funny! thanks for the laugh...

disabledvet's picture

"I like you.  You have big balls."

scratch_and_sniff's picture

I heard he shaves them, just sayin.

tj3's picture

When did he get out of jail?

Problem Is's picture

"...LaDouche was dead! "

LOL.
LaDouche... a conservative, wingnut L. Ron Hubbard with his own... err, ah... religion... and fanatic jihadist followers...

bankrupt JPM buy silver's picture

Israel about to feel the pinch soon, get your rockets out, you are about to hear some Bullshit spewed out of your Wolf Blitzer report about Hezbollah, and why Israel has the right to defend itself against 'terror'

WTI gogin higher, this is far far from over.

www.silvergoldsilver.blogspot.com

Oh regional Indian's picture

While we are on the topic of he's a bull yeah or whosebullahh, check out this report. As if Mexico did not have enough on it's plate already.

5$ gas coming to America. And if the MSM is to be believed, courtesy heez a bull yeah!

 

http://www.youtube.com/watch?v=Nk0XTo6faus&feature=player_embedded

Weird eh? Let no crisis go waste. Spray them heezbullyeahs everywhere.

ORI

http://aadivaahan.wordpress.com/2011/02/21/through-a-lens-darkly/

jus_lite_reading's picture

Benjamin "Kamikazi" Bernank. And so it begins.

buzzsaw99's picture

It's a good thing our pipelines don't run in reverse in a crisis for them the way theirs did for us after Katrina. All your oil belongs to us! [bitchez!] signed X: George W. Bush

THE DORK OF CORK's picture

This is dollar bullish no...

Of course not - that would make sense and markets now do not make sense , its too vulgar.

Euro to 1.45 on this news.

buzzsaw99's picture

Benocide is your friend. He always buys euro in a crisis situation.

THE DORK OF CORK's picture

Ben is my friend.......... Ben is my friend...... Ben is my friend........... Ben is my

Flakmeister's picture

Shit, meet fan....

Flakmeister's picture

BTW, great work Tyler.

Dr. Porkchop's picture

It's ok, the Italians don't need that much gas for their Fiat.

THE DORK OF CORK's picture

Its not just the Italians.

It looks like Nicole will have to get the bus !!!!

www.youtube.com/watch?v=jDe9rvQRHEI

 

serotonindumptruck's picture

This is an act of desperation on Qadaffi's part. He's losing his battle to remain dictator, so he'll do his best to destabilize the global economy.

Qadaffi has been ordered to get out of the pool, but not before he's done emptying his bladder and evacuating his bowels.

jus_lite_reading's picture

Another reason to buy silver and gold! Buy all you can and watch this corrupt system go down in flames. Global war to end all wars is fast approaching.