Prior to OPEC+, a coalition of 23 countries, agreeing to continue with production cuts on December 3, 2020—Libya’s oil production shifted market dynamics in 2020—as the OPEC member swiftly ramped its oil output above 1 million barrels per day (MBPD). In parallel with Libya’s output, global offshore production is emerging with an accumulated sum of more than 1.1 MPBD—from relatively new fields in Europe via Norway, and in South America by way of Guyana and Brazil.
Moreover, OPEC+ will increase production by 500,000 barrels per day (KBPD) in January 2021 from the previously set production cuts of 2020 made by OPEC+: Libya will remain exempt. However, Norway—who is not part of the OPEC+ coalition—will resume producing without curtailment in 2021, as they initially joined in 2020 to assist in balancing the oil market. What impact can global