Libya’s crude oil exports have declined significantly in recent days due to ongoing political disputes between rival governments. The United Nations has been mediating talks to resolve the conflict, but no final agreement has been reached, particularly concerning the leadership of Libya’s central bank, which is responsible for managing the country’s oil revenues.
In the past week, the country’s oil exports have averaged around 314,000 barrels per day (bpd), a decrease from the 468,000 bpd shipped during the first five days of September, according to data from Bloomberg’s tanker tracking. The crisis began in late August when political disagreements led to a halt in some of Libya’s oil production and exports.
The eastern rival government announced a cessation of all oil production and exports from Libya on August 27, exacerbating the situation. Libya, which typically produces about 1.2 million bpd, was further embroiled in a political crisis over the leadership of the Central Bank of Libya, the sole internationally recognized institution that handles the country’s oil income.
The internationally recognized government in Tripoli, the western capital, has been attempting to replace Sadiq Al-Kabir, the current governor of the Central Bank of Libya. This move has sparked controversy between the eastern and western factions, posing a threat to the country’s oil production and exports.
Last week, UN-backed consultations led to an agreement on the process and timeline for appointing a new Central Bank governor and board of directors. However, the situation remains unstable. On Thursday, the United Nations Support Mission in Libya (UNSMIL) expressed disappointment that the two parties have not yet reached a conclusive agreement after two days of discussions.
The ongoing uncertainty has left Libya’s oil sector in a vulnerable state, with experts cautioning that the political impasse could hinder a full recovery of crude oil exports in the near term.