Libya's Oil Production Faces Major Setback Amid Political Turmoil

More than half of Libya's oil production has been halted due to a standoff between rival political factions over control of the central bank and oil revenue. This disruption has led to significant financial losses and threatens to destabilize the fragile peace in the country.

More than half of Libya's oil production, equivalent to approximately 700,000 barrels per day, was offline on Thursday, with exports halted at several ports. The standoff between rival political factions over the central bank and oil revenue threatens to end a four-year period of relative peace.

According to Libya's National Oil Corp (NOC), the average oil output stood at 591,024 barrels on Wednesday, Aug. 28. The country had pumped about 1.18 million bpd in July. Total losses over the past three days following oilfield closures amounted to 1,504,733 barrels, worth roughly $120 million.

Ports in Libya's Oil Crescent, including Es Sidra, Brega, Zueitina, and Ras Lanuf, halted export operations on Thursday. This has significantly impacted the country's oil output and exports. The ongoing crisis over the control of the Central Bank of Libya threatens to trigger new instability in the war-torn nation.

(With inputs from agencies.)