10 Mar 2011

Conflict cuts Libya's oil output by two-thirds

11:15 am on 10 March 2011

The civil war in Libya has cut the country's oil output from 1.6 million barrels a day to half a million.

The chair of Libya's National Oil Corporation, Shokri Ghanem, says the fighting between rebel forces and government troops has also forced foreign and local workers to abandon oilfields.

But Mr Ghanem says Libya's oil industry is intact.

Mr Ghanem says just one OPEC member country has asked for an emergency meeting to be held.

As the fighting stoked supply worries, the price of Brent crude for April delivery rebounded towards $US116 a barrel, settling $2.88 higher for the day.

US April crude closed down 64c at $US104.38 a barrel.