Libya’s Oil Output has Plummeted by Over 50% Due to a Political Standoff.

Libya’s oil production has fallen by over half, with about 700,000 barrels per day offline as of Thursday due to a political standoff. Exports from key ports, including Es Sidra, Brega, Zueitina, and Ras Lanuf, have been halted, leading to significant economic losses.
Key points:

Production and Losses: Libya’s average oil output was 591,024 barrels per day as of August 28, down from 1.18 million bpd in July. Losses in the past three days amount to 1,504,733 barrels, valued at about $120 million.
Political Standoff: The crisis involves rival factions over control of the Central Bank of Libya, with eastern factions demanding the reinstatement of central bank governor Sadiq al-Kabir, dismissed by the Tripoli-based Presidency Council.
Impact on Production: Production has been significantly reduced at several oilfields, including those controlled by Waha Oil Company, and may continue to decline.
Potential Duration: Consulting firm Rapidan Energy Group estimates losses could reach between 900,000 and 1 million bpd, potentially lasting for weeks.

The ongoing instability threatens Libya’s oil sector, which has faced frequent disruptions due to political conflicts since the 2011 fall of Muammar Gaddafi.