Libya's Eastern Government Declares Force Majeure, Halts Oil Production Amid Central Bank Dispute

Aug 26, 2024, 10:36 AM

Libya's eastern government, led by parliament-appointed Prime Minister Osama Hammad, has announced a halt to all oil production and exports, citing a dispute with the Tripoli-based government over control of the Central Bank of Libya. The eastern government has declared a state of force majeure on all oil fields and ports, effectively stopping production and exports until further notice. This decision follows the Tripoli-based government's move to replace the leadership of the central bank, which has escalated tensions between the rival administrations. The announcement has had an immediate impact on global oil markets, with Brent crude prices reacting to the news. Additionally, Libya's Waha Oil Company and Sirte Oil Company have announced plans to gradually reduce output due to continued pressure.