Libya's Oil Production Plummets Amid Political Turmoil

Libya's National Oil Corporation (NOC) reported a significant 63% decrease in oil production due to escalating political tensions, particularly a blockade by eastern factions demanding the reinstatement of central bank governor Sadiq al-Kabir. This crisis has led to a loss of approximately 700,000 barrels per day, with forecasts suggesting potential losses could reach 1 million barrels per day, significantly impacting global oil markets. The ongoing dispute highlights a breakdown of a fragile agreement aimed at stabilizing control over Libya's oil revenues, a critical economic resource for the nation. With the Tripoli-based government and eastern authorities at odds, the situation threatens to revert Libya to the chaos seen post-Qaddafi. Analysts warn that without a resolution, Libya may become a significant destabilizing factor in the oil market as production remains volatile. Increased oil prices are emerging in response to these developments, raising concerns among Mediterranean nations and beyond.