Libya oil production picks up, political turmoil or continued to hinder production

[ Time:2022-06-21 | Hits:556 ]

Libyan Energy Minister Mohamed oun said on Monday that Libya's oil production had risen to 700000 to 800000 barrels per day in the past week. Compared with the 100000 to 150000 barrels per day claimed by the energy minister on June 13, the country's oil production has increased significantly.
According to informed sources, Libya's oil production increased significantly last week in part due to the increase in the production of Sharara, the country's largest oil field; When the oil field operates at full capacity, the daily output can reach about 300000 barrels. In addition, the production of sarir, a key oil field in the eastern part of the country, is also increasing.
It is reported that Libya has the largest oil reserves in Africa. However, due to the intensification of political tensions and protests in the energy sector and ports, Libya's oil production has been unstable this year; In 2021, the average daily oil production of Libya will be 1.2 million barrels.
Many OPEC member states, including Libya, have been unable to achieve the production increase target, which has led to a continuous tight supply in the oil market. Since the beginning of this year, the price of crude oil has risen by nearly 50%. As of press time, WTI crude oil futures fell 0.28% to USD 107.69/barrel, while Brent crude oil futures fell 0.59% to USD 112.45/barrel.
Statistics show that since the fall of Gaddafi in 2011, Libya has been deeply involved in the differentiation and bloody conflict of hostile factions. At present, the domestic political situation in Libya is turbulent, mainly due to the struggle between Libyan Prime Minister Abdul Hamid dbeibah, who is recognized by the international community, and Fathi bashaga, the prime minister and former interior minister elected by the national assembly in eastern Libya in February this year.
After bashaga was sworn in, dbeibah refused to step down. The bashaga camp began to close ports and oil fields in April to force dbeibah to step down.
Fathi bashaga said that it is very unlikely that Libya will hold elections this year. He predicted that the political turmoil may last for a whole year in 2022. At a time when the oil market is in short supply, the political turmoil increases the possibility that oil production will be interrupted for months.
Libya's oil production is often disrupted by political tensions. In late April, the Libyan national oil company (NOC) said that some major oil fields and export terminals were blocked by armed groups, and an oil refinery was damaged due to armed conflict. At that time, the national oil production was reduced by more than 550000 barrels per day. In September last year, the intensification of the conflict between Mohamed oun and Mustafa sanalla, chairman of the Libyan national oil company, triggered demonstrations at several key oil terminals in Libya, which also impacted the country's oil production.