Eastern Libya Shuts Down All Oil Fields

The eastern Libyan government has announced a complete shutdown of all oil fields, halting production and exports, as tensions escalate with the internationally recognized Tripoli government over the leadership of the Central Bank of Libya (CBL). The National Oil Corp (NOC), which oversees Libya's oil resources, has not confirmed this closure but previously indicated a gradual reduction in output due to protests. This political struggle, which has intensified recently, threatens a UN-brokered peace deal and has already led to significant production cuts from approximately 1.2 million barrels per day to potentially just 130,000 bpd if the eastern production stops. The eastern region, under the control of military leader Khalifa Haftar, is critical to Libya's oil wealth, housing most of the country’s oil reserves and major export terminals. Amid this turmoil, Brent crude prices have reacted, jumping above $80 a barrel as the potential for reduced exports looms. The CBL has suspended its operations due to disturbances and ongoing protests, further complicating Libya's economic and political landscape.