Libya’s oil exports tumble to 400,000 bpd as political output stagnates

Libya’s crude exports fell to around 400,000 barrels per day (bpd) this month from 1 million bpd in August, as the North African OPEC producer’s political impasse continues, Reuters reported on Tuesday. citing data from ports and ship tracking services.

Most of Libya’s oil exports this month went to nearby Italy and Greece, while some cargo traveled to China and Canada, according to data from oil analyst Kpler and port agents cited by Reuters.

Libya’s National Oil Corporation (NOC) canceled some cargoes, although it did not declare force majeure for all exports from the country. An NOC source told Reuters earlier this month that the company had allowed tankers to dock at Libyan ports and load crude oil from storage to avoid fines if shipments defaulted on contractual obligations.

The most recent crisis in Libya erupted in late August.

Some of Libya’s production and exports have been halted because of a political impasse over the leadership of the OPEC producer’s central bank.

Oil production at several Libyan oil fields was halted on August 27 after the rival government in the east announced a halt to Libyan oil production and exports.

Libya, which pumped about 1.2 million barrels a day of oil before the shutdown, has been plunged into a deeper political crisis over the row over the leadership of the Central Bank of Libya, the only internationally recognized depository of Libya’s oil revenues.

The internationally recognized government in the western capital, Tripoli, was seeking to replace Sadiq Al-Kabir, the governor of Libya’s Central Bank. This led to the latest controversy between Eastern and Western governments and political factions, again threatening to cut Libya’s oil production and exports.

Earlier this month, Libya’s warring political factions reached an agreement on the mechanism and timelines for the appointment of the Central Bank Governor and Board of Directors in consultations hosted by the United Nations Support Mission in Libya (UNSMIL).

However, the situation remains uncertain, as progress in the negotiations has stalled.

By Charles Kennedy for Oilprice.com

More top reads from Oilprice.com