Libya’s oil production has surged back above 1 million barrels per day (bpd) for the first time in two months, following the resolution of a political standoff, according to Bloomberg.
The country’s eastern government had previously halted all oil production and exports due to a dispute over the control of the central bank, which oversees billions of dollars in energy revenues.
Last Thursday, Libya resumed oil production, reintroducing hundreds of thousands of barrels per day to global markets.
As of Sunday, the nation was producing 1.067 million bpd, following the eastern government’s decision to lift the oil blockade on October 3, insiders reported anonymously.
This increase in supply comes as the market grapples with soft demand, despite the expectation that OPEC will begin easing its production cuts later this year.
Nonetheless, oil prices spiked on Monday as traders expressed concerns about potential disruptions to global supply due to escalating tensions in the Middle East. Brent crude has risen by 11% over the past week, currently trading near $80 per barrel.
Libya, typically producing over 1.2 million bpd, saw output plunge to less than 450,000 bpd in August after the UN-recognized western government dismissed the central bank governor.
Political strife often jeopardizes Libya’s oil industry, as rival factions vie for control of this key sector. Despite a 2020 UN-brokered ceasefire aimed at ending hostilities, deep political divisions between the country’s east and west continue to spark clashes and blockades, frequently targeting Libya’s most valuable resource—its oil.
