Libya’s oil production is now down 700,000 bpd

Libya’s crude output fell by 700,000 barrels per day on Thursday as the country’s eastern government began shutting down oil fields in an escalation of the political infighting that has been locked in Libya since 2011.

The country’s current production rate is below 600,000 bpd at the moment, Reuters reported, citing Libya’s National Oil Corporation. Last month’s daily average was 1.18 million barrels per day, the report said.

According to information received from oil engineers working in the Libyan oil zone, fields including Sharara and El Feel were shut down and the production rate of Waha Oil Company, a subsidiary of NOC, decreased to 150,000 bpd from 280,000 bpd . Exports from all of Libya’s oil ports were also suspended. The latest loadings on Thursday totaled 600,000 barrels, Reuters also said.

Libya was plunged into a deeper political crisis earlier this month following a dispute over the leadership of the Central Bank of Libya, the only internationally recognized depository of Libya’s oil revenues.

The government of Benghazi in eastern Libya, which is a rival of the Tripoli government in the politically divided North African OPEC producer, said on Monday it would halt crude production and exports.

The eastern government backed by military leader Khalifa Haftar is not recognized internationally, but Haftar and his men control most of the country’s oil fields.

In recent weeks, the situation in Libya has deteriorated and the East-West rivalry has flared up again and centered on the leadership of the Central Bank of Libya – the guardian of Libya’s wealth and oil export revenues. The government in Tripoli wants to appoint a new governor, while the government in Benghazi wants the incumbent to remain in office.

Oil prices rallied earlier this week due to supply disruptions in Libya and could yet contribute to a weekly gain.

By Irina Slav for Oilprice.com

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