Reuters reported that Algeria's state owned energy company Sonatrach has halted operations in Libya.

Mr Youcef Yousfi energy minister of Algeria said that Sonatrach's operations had stopped completely amid the fighting between rebels and forces loyal to Muammar Gaddafi. Sonatrach does not produce oil or gas in Libya but operates several exploration blocks. Oil output in OPEC member Libya has fallen sharply due to the shutdown fields operated by foreign companies.

A Reuter’s survey estimated Libya produced 320,000 barrels per day of crude in March down from 1.6 million barrels per day before the crisis erupted. Sonatrach operates three natural gas focused exploration blocks and discovered oil at another block in the Ghadames Basin in 2009.

Mr Yousfi said that the current crisis in Libya had not affected oil demand so far. He added that prices still remain at an acceptable level and there was no oil supply shortage.

(Sourced from Reuters)