Libya’s oil company halts production as crisis gets worse
The cutoff derives from the continuing conflict between Libya’s two rival political factions over control of the central bank and oil revenue
Libya's capital city of Tripoli (Getty Images)
As the political crisis in Libya deepens, the country’s National Oil Co. halted production at its petroleum fields and cut off shipments from its ports, rattling regional oil markets.
The NOC declared a “force majeure” to inform customers that orders could not be fulfilled because of unforeseen circumstances.
The cutoff derives from the continuing conflict between Libya’s two rival political factions over control of the central bank and oil revenue.
Oil prices rose on Monday, recovering some losses from late last week, amid the halt in Libyan exports and concerns about the coming decision on OPEC+ production levels.
The political crisis involves a struggle for power between the eastern government, led by commander Khalifa Haftar’s Libyan National Army, and the internationally recognized western government in Tripoli, led by Prime Minister Abdulhamid Dbeibeh.
The NOC reported a 63% drop in oil production last week due to the shutdown, which began Aug. 26. Output was estimated at 591,000 barrels per day, down from 1.2 million barrels in late July.