Libya Faces Oil Production Crisis Amid Political Struggle

The United Nations Support Mission in Libya (UNSMIL) has expressed alarm over the escalating crisis in Libya, particularly regarding the Central Bank and the oil sector. Tensions between the eastern and western governments have led to the eastern administration declaring force majeure on oil production and exports, following the controversial dismissal of Central Bank Governor Sadiq Al-Kabir by the Tripoli government. This political turmoil threatens to disrupt Libya's oil output, potentially affecting global oil prices, with analysts warning of a rise in Brent crude prices due to the anticipated loss of up to 900,000 barrels per day. The UNSMIL has called for urgent measures to stabilize the situation and ensure the continuity of public services, emphasizing the need for a consensus to facilitate a political resolution. The conflict reflects deeper divisions within Libya that have persisted since the fall of Gaddafi, with both governments relying heavily on oil revenues for their budgets. As the situation deteriorates, local protests and threats from regional groups may lead to further disruptions in oil production.