Libyan Central Bank Crisis Spurs Oilfield Shutdown

The United Nations hosted talks in Tripoli to resolve a central bank crisis in Libya, which led to a blockade of oil production. The conflict began when Western factions ousted Governor Sadiq al-Kabir, prompting Eastern factions to halt oil output. Talks aimed at finalizing an agreement continued late into the night.

TRIPOLI, Sept 2 (Reuters) - The United Nations Support Mission in Libya (UNSMIL) conducted talks in Tripoli on Monday to address a central bank crisis that has led to a shutdown of oil production, threatening the nation's major energy exports.

The crisis erupted when Western factions attempted to replace longtime governor Sadiq al-Kabir with a rival board, an action that prompted Eastern factions to halt all oil production, triggering concerns for the global oil market.

Representatives from Libya's House of Representatives, High Council of State, and Presidential Council attended the prolonged talks, aiming to draft an agreement for review and potential signing on Tuesday. Oil prices slightly recovered amid ongoing negotiations.

(With inputs from agencies.)