Oil tanker docks in rebel-held Libyan port
An oil tanker believed to be chartered by international trading company Vitol docked in the rebel-held Libyan port of Benghazi Monday to load crude, in the second known oil shipment from the rebel-held side since fighting broke out in February, shipbrokers told Dow Jones Newswires Tuesday, Market Watch reports.
However, the move is unlikely to signal a resumption of Libyan oil exports as rebel leaders have said they won't restart production until after Col. Moammar Gadhafi steps down. Analysts have said it could take years to restore Libyan oil production to pre-war levels as the oil wells, which were hastily shuttered, will have likely sustained damage. It may also take time before the foreign operators upon whom the sector was so dependent can return to work.
According to shipbrokers and traders, the Captain X Kyriakou Suezmax vessel, which has the capacity to carry over 1 million barrels of crude, was chartered by Switzerland-based oil trading company Vitol from owners Athenian Sea Carriers .
Traders and shipping sources said that the crude oil could be intended as payment for the delivery of products supplied by Vitol to the rebel forces. According to shipping sources, Vitol also chartered the product tanker Nord Nightingale which made delivery to Benghazi earlier this week.
Both Vitol and Athenian Sea Carriers declined to comment.
The latest move to export Libyan crude comes as pressure increases on Gadhafi to step down. Rebel fighters are making headway against government troops, with fighting currently raging over the key oil town Brega.
It also comes as the loss of Libyan crude exports has tightened the European physical crude market and added around $10 a barrel to benchmark Brent crude futures prices.
Vitol chartered the first shipment of Libyan crude in April and sold it to U.S. refiner Tesoro Corp. for an undisclosed sum. The Captain X Kyriakou's final destination is currently unknown.
However, the move is unlikely to signal a resumption of Libyan oil exports as rebel leaders have said they won't restart production until after Col. Moammar Gadhafi steps down. Analysts have said it could take years to restore Libyan oil production to pre-war levels as the oil wells, which were hastily shuttered, will have likely sustained damage. It may also take time before the foreign operators upon whom the sector was so dependent can return to work.
According to shipbrokers and traders, the Captain X Kyriakou Suezmax vessel, which has the capacity to carry over 1 million barrels of crude, was chartered by Switzerland-based oil trading company Vitol from owners Athenian Sea Carriers .
Traders and shipping sources said that the crude oil could be intended as payment for the delivery of products supplied by Vitol to the rebel forces. According to shipping sources, Vitol also chartered the product tanker Nord Nightingale which made delivery to Benghazi earlier this week.
Both Vitol and Athenian Sea Carriers declined to comment.
The latest move to export Libyan crude comes as pressure increases on Gadhafi to step down. Rebel fighters are making headway against government troops, with fighting currently raging over the key oil town Brega.
It also comes as the loss of Libyan crude exports has tightened the European physical crude market and added around $10 a barrel to benchmark Brent crude futures prices.
Vitol chartered the first shipment of Libyan crude in April and sold it to U.S. refiner Tesoro Corp. for an undisclosed sum. The Captain X Kyriakou's final destination is currently unknown.