Libya’s crude oil production has plunged by 700,000 barrels per day, as of Thursday, due to escalating internal political conflicts. The eastern government of Libya has begun shutting down oil fields, further intensifying the political strife that has gripped the country since 2011.
Current production in Libya has dropped below 600,000 barrels per day, according to a report from Reuters, which cites the National Oil Corporation (NOC). Last month, the average daily production was 1.18 million barrels per day.
Petroleum engineers working in Libya’s oil fields have confirmed that major fields such as Sharara and El Feel have been shut down. The production rate at Waha Oil Company, a subsidiary of NOC, has also decreased significantly from 280,000 barrels per day to 150,000 barrels per day. Additionally, exports from all of Libya’s oil ports have been halted. The final shipments, totaling 600,000 barrels, were loaded on Thursday, as reported by Reuters.
The latest political crisis in Libya was sparked earlier this month by a dispute over the leadership of the Central Bank of Libya, the only internationally recognized repository for the country’s oil revenues.
The eastern government, based in Benghazi and a rival to the Tripoli-based administration, announced on Monday that it would halt all crude oil production and exports. Although the Benghazi government, supported by military leader Khalifa Haftar, is not internationally recognized, Haftar and his allies control most of Libya’s oilfields.
In recent weeks, the situation in Libya has worsened, with the rivalry between the east and west intensifying over the Central Bank’s leadership. The Tripoli government seeks to appoint a new governor, while the Benghazi government insists on keeping the current one in office.
This disruption in Libya’s oil supply has contributed to a rise in oil prices earlier this week and may further influence prices in the coming days.