Libya’s oil production has surpassed 1 million barrels per day (bpd) for the first time since late August. This increase follows an agreement between the country’s warring factions on how to elect new leadership for the Central Bank of Libya.
According to anonymous sources who spoke with Bloomberg, Libya’s oil output reached 1.067 million bpd on Sunday. Full-scale crude oil production resumed on October 3, after more than a month of halted operations due to a political deadlock between the eastern and western administrations of the country.
As of Sunday, Libya’s largest oil field, Sharara, was producing approximately 240,000 bpd, according to the same sources.
The resolution of the political crisis is expected to return several hundred thousand barrels of crude oil per day to the market. This comes at a time when there are concerns about potential supply shocks from the Middle East amid escalating tensions.
Most Libyan oilfields experienced production suspensions for over a month due to clashes between the eastern and western administrations regarding the governorship of the Central Bank of Libya.
In late September, rival factions reached an agreement during UN-mediated talks, allowing for the election of the Central Bank’s leadership. This breakthrough has paved the way for restoring oil production and exports.
Before the recent political turmoil, Libya was producing about 1.2 million bpd. The crisis deepened as disputes arose over the Central Bank’s leadership, which is the only internationally recognized authority for Libya’s oil revenues.
The internationally recognized government based in Tripoli, the capital, has sought to replace Sadiq Al-Kabir, the current governor of the Central Bank. This attempt has led to renewed tensions between eastern and western factions, raising concerns about potential further reductions in Libya’s oil production and exports.
You Might Be Interested In
- What Is Wti Oil Used for?
- What Is the Ticker for WTI Crude Oil?
- How to Trade Crude Oil Options in India?