Libya reveals details of oil-port deal, crudes price on decline

Libya's interim government on Monday revealed details of the agreement with the rebels on lifting oil blockades, lowering oil prices in international markets. "The government works to preserve 'Libyan blood' in order to avoid more economic losses. The government has agreed on the deal.. .and (it) is now signed," the authorities said in an official statement. According to the statement, the most important part of the agreement is to form a committee to investigate corruption and embezzlement in the oil sector since the fall of former leader Muammar Gaddafi's government. The agreement also stressed on a official cancellation of a parliament's decision to wipe out the armed groups seizing the oil ports. Two oil-ports, Zweetina in Ajdabiya and al-Herega in Tobruk, will reopen immediately, while Sidrah and Rass Lanuf are scheduled to open in four weeks. The seizure of the oil-ports by local militias and defected Petroleum Facilities Guards have cut the north African country off its main source of income since June 2013. Since oil exports were suspended, Libya's oil production has declined sharply from 1.5 million barrels per day before the shutdown to just 250,000 barrels now. Brent crude futures fell 1.3 percent last week and Brent crude oil fell below 106 U.S. dollars a barrel on Monday, as a positive outlook on the resumption of Libyan oil exports encouraged confidence when the deal was sealed. Analysts said the index could drop further if exports do resume because it eases supply worries in the international market.