Oilfield closures hit Libya's oil production

Libya’s state-owned oil company National Oil Corporation (NOC) has confirmed recent oilfield closures in the country.

PHOTO: Flag of Libya. Getty Images

The OPEC producer is facing political turmoil due to the ongoing dispute over the control of its central bank, the only globally acknowledged depository of its oil revenues.

This has led to the indefinite shutdown of several oilfields, including the El Feel oilfield in southwestern Libya, according to a Reuters report. So far, the country has suffered about 1.50 million b/d of "losses and damages" due to the oilfield shutdowns, NOC said on social media platform X (formerly Twitter).

Last week, the Benghazi-based government, which opposes the internationally recognized administration in Tripoli, announced plans to halt all crude oil production sites.

“The country’s National Oil Corp said that production had been cut by 63% due to recent unrest. However, it has said it is working to reduce the disruption and expects an end to the crisis soon,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Libya's crude oil output declined by 19,000 b/d on the month in July to 1.17 million b/d, according to OPEC’s latest monthly oil market report (MOMR).

Brent's price found some support as “Libyan supply disruptions continue,” two analysts from ING Bank noted.

By Aparupa Mazumder

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