Rising world oil prices will save Libya's economy from deficit: parliament member

February 4, 2018

The rise of world oil prices will save Libya's national economy from deficit, Tariq Al-Jarushi, a member of the Libyan eastern-based House of Representatives, said Saturday.

'The high oil prices will save the Libyan economy from paralysis and disability. After mid-2018, the price of Libyan crude oil will be as high as 90 U.S. dollars per barrel,' Al-Jarushi said in a statement.

Al-Jarushi expressed fears over international pressure, which could lead to subversive activities carried out by militia and terrorist organizations against oil fields to prevent Libya from increasing its oil production.

'There are signs that the Libyan economy is recovering. There are countries that are trying to prolong the economic and security crisis in Libya. They may move inside or outside OPEC (Organization of the Petroleum Exporting Countries) to limit the rise of Libyan oil prices,' he said.

Libya suffered losses over the past four years of more than 140 billion dollars due to repeated closure of oil fields and ports by armed conflicts and low oil prices in the global market.

Oil and gas account for 94 percent of Libya's foreign exchange earnings, the country's main source of income.

Libya boasts oil reserves of 41 billion barrels, perhaps the largest in Africa.

Al-Jarushi pointed out that the vote on a new Central Bank governor, the rise of oil prices, the increase of local currency against foreign currencies, and the drop in the local prices of food and medicine are 'indications that do not satisfy some countries hostile to Libya's stability and security,' in reference to Qatar, Turkey and Sudan.

On Dec. 19, 2017, the parliament elected Mohamed Abdel-Salam Shoukri as the new governor of the Central Bank of Libya.

The parliament's unilateral appointment of Shoukri was rejected by the Tripoli-based Higher Council of State, calling it a 'move doomed to failure.'