Political Crisis Halts Libya's Oil Production

Libya's crude oil exports have plummeted to 400,000 barrels per day amid a political crisis that has significantly curtailed output. Destinations include Italy and Greece, with some shipments to China and Canada. The political stand-off involves factions ousting the central bank governor, leading to production shutdowns.

Libya's crude oil exports have dramatically fallen to about 400,000 barrels per day (bpd) this month, down from August's 1.02 million bpd, according to port and shipping data. The OPEC member is currently facing a political crisis that has significantly reduced oil output.

Most of Libya's crude oil exports this month have been sent to Italy and Greece, data from oil analytics firm Kpler and port agent records reveal. Some shipments have also been directed to China and Canada. The nation remains entangled in a political deadlock that has curbed much of its oil production.

The conflict erupted last month when western Libyan factions attempted to oust the central bank governor, Sadiq al-Kabir. This move prompted eastern factions to halt all oil output. The National Oil Corporation, responsible for managing Libya's fossil fuel resources, has declared force majeure on specific cargoes rather than all port loadings.

On Sept. 2, the corporation declared force majeure on all crude production at the El Feel oilfield. Previously, on Aug. 7, it declared force majeure on exports from the Sharara field. On Aug. 28, before the central bank governor crisis, the corporation announced that oil production had dropped by over half to around 590,000 bpd. No new production figures have been released since then.

(With inputs from agencies.)