According to CCT Finance APP, after resolving the political deadlock, Libya will resume crude oil production on Thursday, supplying hundreds of thousands of barrels of crude oil to the global market every day.

The eastern government of the country initially ordered a halt in production, but according to a statement on its social media page, the government has lifted the force majeure order, allowing all oil fields and export terminals to resume production.

The Minister of Energy Khalifa Abul Sadeq stated in an interview that the daily production of the country's largest oil field, Sharara, is 0.26 million barrels, which had already been closed before the political dispute began at the end of August, and production at this oil field will also resume on Thursday.

The daily oil production of this North African country usually exceeds 1.2 million barrels, but in late August, the UN-recognized western government of this divided country dismissed the central bank governor, prompting its eastern rival to order the closure of oil production in response, causing the daily oil production to drop to under 0.45 million barrels. Due to the struggle for control of key sectors between the opposing factions, the country's oil output is often affected by political wrangling.

Just as conflicts escalating in the Middle East are pushing oil prices to nearly $75 per barrel, the return of oil supply will bring greater downward pressure to crude oil. The market is still trying to cope with weak demand, while some OPEC members are preparing to ease some of the production cuts since December last year.

Representatives of Libya's rival governments agreed on September 26 to appoint Naji Issa as the head of the central bank, resolving the deadlock over the position that effectively controls billions of dollars in energy revenues for Libya.

Since the overthrow of the long-time dictator Moammar Qaddafi in 2011, Libya has been plagued by turmoil, with armed groups loyal to different factions or individuals often closing key oil fields in the process of vying for influence. The country holds the largest known oil reserves in Africa.

Like the previous Libya agreement, the foundation of the agreement reached on September 26th is not stable. In 2020, the UN-supported ceasefire successfully ended the conflict, but has not yet prompted the country to hold national elections or resolved the long-standing divisions between the east and west.

Editor/ping