Libya oil production halves amidst political deadlock

Libya, a major oil producer, is facing a new crisis as key oil producers halt production, leading to the shutdown of more than half of the country’s oil production. The crisis stems from a standoff between rival political factions over control of the Central Bank of Libya and oil revenue, threatening the country’s relative peace after four years.

Ports in Libya’s Oil Crescent region, including Es Sidra, Brega, Zueitina, and Ras Lanuf, have stopped export operations, impacting the country’s oil output significantly. Production has also been reduced at key oilfields, leading to a total loss of approximately 700,000 barrels per day.

The crisis has escalated as eastern factions demand the reinstatement of the central bank governor, creating tensions between rival factions in the east and west of the country. With little stability since the ouster of Muammar Gaddafi in 2011, Libya continues to grapple with political and military struggles that affect its oil production.

Despite past blockades, the current crisis threatens to last for weeks, affecting oil production and exports. The resolution of this crisis remains uncertain as the country navigates through its longstanding political divisions.

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