However, oil (NYSEARCA:USO) markets rely just as much on understanding fundamentals as understanding geopolitics. It's not rocket science to figure out that with Russia's backing, General Haftar will now have the largest army in Libya along with air support from Russia. The issue has always been that the West controlled the money, while the East controlled the oil ports. Ras Lanuf and Es Sider are two of the largest oil ports in Libya and both are under control by General Haftar's forces. Nigeria, the other exempt OPEC member, continues to face production issues, and Libya's recent increase in oil production has been offset by Nigeria's decline.
Source: Libya Today January 11, 2017 21:15 UTC