Oil prices continued to fall on Wednesday by more than 4% compared to Tuesday amid expectations that the political conflict that is halting Libyan exports may be resolved, US News reported.
The newspaper explained on its website that Brent crude futures for November fell 37 cents, noting that there are indications of an agreement between the House of Representatives and the Supreme Council of State to jointly appoint a governor for the Central Bank, which may defuse the battle for control of oil revenues that sparked the conflict, according to it.
Last Monday, Reuters reported that oil exports from Libya’s main ports had stopped, and production had stopped across the country.
Reuters added, citing 6 engineers working in the Libyan oil sector, that some production had been increased to feed local power generation, explaining that the Arabian Gulf Oil Company had ordered an increase in production in its fields to feed a power station in the port of Hariga.
Reuters confirmed that exports from the ports of Sidra, Ras Lanuf, Hariga, Zueitina, Brega and Sirte are still suspended.
Last Thursday, the National Oil Corporation confirmed that daily oil production had fallen to less than 600 barrels, indicating a loss of more than $120 million during the first three days after the start of reducing oil production.
On August 26, the Prime Minister assigned by Parliament, Osama Hamad, declared a state of force majeure on all oil fields, ports and institutions, and halted oil production and exports, due to the events at the Central Bank.
Immediately after that, the head of the Government of National Unity, Abdul Hamid Dabaiba, stressed the need to follow up on the conditions of the oil fields and not allow them to be closed under flimsy pretexts.
The decision to shut down oil came in response to the appointment of a new governor and board of directors for the Central Bank by a decision of the Presidential Council, which gave the authority to resume work to Deputy Abdel Fattah Ghaffar until Mohamed El-Shokry officially assumes his duties.
Source: US News + Reuters + National Oil Corporation
2024-09-07 00:56:23