Libya's oil production will return to half of its prewar level before the end of the year

A Libyan industry official and IEA said on Thursday that by the end of this year, Libya’s oil production will rise back to the level before the start of the domestic war – half of 1.6 million barrels per day.

Nuri Berruien, chairman of the National Oil Co., said on Thursday that by the end of this year, Libya’s oil production will reach 750,000-800,000 barrels per day, about half the level before the start of the civil war.

Nuri Berruien also confirmed that a large oil field, partially owned by Italian Eni SpA, is about to resume production.

Libya currently produces about 600,000 barrels of oil per day.

In a report, the IEA praised Libya officials for their efforts in restoring the country’s oil output. “They confirmed that their previous estimates were too conservative.”

The IEA said that it is estimated that the global oil supply and demand will be roughly balanced in 2012, despite the warning that the inventory is still at a low level, and that instability in crude oil production in the Middle East or continue to push up oil prices.

In September, the IEA predicted that Libya’s oil output before the end of the year would not exceed 400,000 barrels.

Now, the IEA expects the output of Libya's oil before the end of the year to reach 700,000 barrels, and it also expects Libya's oil output in the first quarter of next year to be 800,000 barrels.

The IEA expects that Libya's daily oil output will increase to 1.17 million barrels by the end of 2012.