Libya's Oil Production Crisis: A New Phase of Turmoil

Libya's oil production has fallen by over half, with exports halted due to political conflict over the control of the Central Bank of Libya. The situation threatens renewed instability between eastern and western factions. Ports and oilfields are affected, with output losses potentially reaching 1 million barrels per day.

Libya's oil production has plummeted by more than half, down by approximately 700,000 barrels per day. Export operations have ceased at several key ports, as an escalating political standoff over the control of the Central Bank of Libya is poised to disrupt a four-year period of relative peace in the country.

According to engineers, operations at the hydrocarbon-rich Oil Crescent's ports of Es Sidra, Brega, Zueitina, and Ras Lanuf were halted on Thursday. Four vessels, each carrying 600,000 barrels of oil, did manage to depart from these regions earlier that day.

Production at oilfields run by Waha Oil Company has significantly decreased, with expectations of further declines. Other fields, including Sharara, Sarir, Abu Attifel, Amal, and Nafoora, have also seen halts or reductions in output. The crisis stems from eastern factions' demands regarding the reinstatement of central bank governor Sadiq al-Kabir.

(With inputs from agencies.)