The energy market has met an old foe: a war in an oil-rich Middle Eastern country.
As Western countries’ warplanes bombed Libya again on Monday in the biggest military attack against an Arab country since the invasion of Iraq in 2003, the oil market slowly came to terms with an ominous threat: a long, drawn-out war.
Libya is the world’s 12th largest oil exporter and a member of the Opec oil cartel. Production has already dropped to a trickle, down from a pre-crisis level of 1.58m barrels a day, according to the International Energy Agency, the watchdog.
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