Libyan Oil Production Soars After End of Political Conflict

The Russian Deputy Prime Minister announces that the decision to increase oil production by OPEC+ in December remains uncertain, due to market fluctuations and global demand.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25£/month*

*billed annually at 99£/year for the first year then 149,00£/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2£/month*
then 14.90£ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Libya has experienced a significant increase in crude oil production after the end of a political crisis that had halved its output in September. The country had dropped from 1.15 million barrels per day (bpd) in July to just 580,000 bpd in September due to a conflict over the leadership of the Central Bank of Libya. The resolution of the conflict on October 3, with the appointment of Naji Essa as the new governor of the Central Bank, allowed production to resume. According to the National Oil Corporation (NOC), daily production has reached 1.22 million bpd, even surpassing pre-crisis levels.

Key oil fields have resumed operations, including Sarir, Mesla, and Es Sider, contributing to the production increase. Maintenance work was carried out during the shutdown period, enabling a more efficient restart. The NOC also announced the drilling of new wells in the Abu Attifel, Sharara, Nafoura, and Sarir fields, adding 12,000 bpd to the total production. These efforts are part of the NOC’s strategy to offset production losses and address the recent decline in oil prices.

Resumption of Exports and Impact on the Mediterranean Market

Libyan oil exports are also on the rise, with shipments scheduled from all major ports in the country in October. Vessels have already departed from Mellitah, Es Sider, Marsa El Brega, Ras Lanuf, Zueitina, and Marsa Hariga, according to loading schedules. This increase in exports could impact other crudes destined for Europe, as Libya’s light sweet oil is prized by refiners in the Mediterranean and Northwestern Europe.

The surge in Libyan supply could lead to a drop in prices of competing crudes such as Azeri Light, Algeria’s Saharan Blend, and some West African crudes like Nigeria’s Bonny Light. Differentials for Mediterranean-bound crudes had strengthened after the production halt in Libya but have started to weaken with the resumption of supply. Traders have reported an abundance of Libyan cargoes on the market, which could displace other crudes.

Production Outlook and Political Challenges

Although Libyan production is recovering, experts remain cautious about the NOC’s ambitious goals to reach 2 million bpd in the next five years. Complex relationships between key political actors, including Marshal Khalifa Haftar, Prime Minister Abdul Hamid al-Dbeiba, and NOC President Farhat Bengdara, can influence the stability of oil production. In the past, political conflicts have led to blockades of oil facilities, such as in 2022 when Haftar’s self-proclaimed Libyan National Army blocked key oil fields.

The oil sector accounts for about 93% of government revenues, making it a major stake in the country’s power struggles. Key institutions related to oil, such as the Ministry of Petroleum, the NOC, and the Central Bank, are often at the heart of political tensions. Since the fall of Muammar Gaddafi in 2011, Libya has experienced chronic instability, with rival governments in Tripoli in the west and Benghazi in the east since 2014.

Implications for the Global Oil Market

The recovery of Libyan production comes at a time when the global oil market is sensitive to supply fluctuations. Crude oil prices have recently declined, reaching nearly $70 per barrel in September due to sluggish Chinese demand and fears of oversupply in 2025. This price drop prompted the Organization of the Petroleum Exporting Countries (OPEC) to delay easing some production cuts.

Although Libya is exempt from OPEC quotas due to its unstable political situation, its growing production could influence market dynamics. A significant increase in Libyan supply could exert downward pressure on prices, affecting the strategies of other producing countries. However, the sustainability of this recovery will depend on internal political stability and the country’s ability to maintain uninterrupted production.

An operational fire was contained at the largest refinery in the US Midwest, causing a temporary shutdown of several processing units, according to industry data.
The Dutch Supreme Court has rejected Russia's final appeal, confirming a record $50bn compensation to former Yukos shareholders, ending two decades of legal battle.
A ruling by Namibia's High Court upheld the media regulator’s decision that the state broadcaster NBC failed to ensure balance in its coverage of ReconAfrica’s oil operations.
The Canadian oilfield services provider announced a $75mn private placement of 6.875% senior unsecured notes to refinance bank debt and support operations.
Commercial crude reserves in the United States posted an unexpected increase, reaching their highest level in over a month due to a marked slowdown in refinery activity.
Beijing calls Donald Trump's request to stop importing Russian crude interference, denouncing economic coercion and defending what it calls legitimate trade with Moscow.
India faces mounting pressure from the United States over its purchases of Russian oil, as Donald Trump claims Prime Minister Narendra Modi pledged to halt them.
Three Crown Petroleum has started production from its Irvine 1NH well and plans two new wells in Wyoming, marking a notable acceleration of its deployment programme in the Powder River Basin through 2026.
The International Monetary Fund expects oil prices to weaken due to sluggish global demand growth and the impact of US trade policies.
With lawsuits multiplying against oil majors, Republican lawmakers are seeking to establish federal immunity to block legal actions tied to environmental damage.
The United Kingdom targets two Russian oil majors, Asian ports and dozens of vessels in a new wave of sanctions aimed at disrupting Moscow's hydrocarbon exports.
Major global oil traders anticipate a continued decline in Brent prices, citing the fading geopolitical premium and rising supply, particularly from non-OPEC producers.
Canadian company Petro-Victory Energy Corp. has secured a $300,000 unsecured loan at a 14% annual rate, including 600,000 warrants granted to a lender connected to its board of directors.
Cenovus Energy has purchased over 21.7 million common shares of MEG Energy, representing 8.5% of its capital, as part of its ongoing acquisition strategy in Canada.
In September 2025, French road fuel consumption rose by 3%, driven by a rebound in unleaded fuels, while overall energy petroleum product consumption fell by 1.8% year-on-year.
Société Ivoirienne de Raffinage receives major funding to upgrade facilities and produce diesel fuel in line with ECOWAS standards, with commissioning expected by 2029.
India is funding Mongolia’s first oil refinery through its largest line of credit, with operations scheduled to begin by 2028, according to official sources.
Aramco CEO Amin Nasser warns of growing consumption still dominated by hydrocarbons, despite massive global energy transition investments.
China imported an average of 11.5 million barrels of crude oil per day in September, supported by higher refining rates among both state-run and independent operators.
The New Vista vessel, loaded with Abu Dhabi crude, avoided Rizhao port after the United States sanctioned the oil terminal partly operated by a Sinopec subsidiary.

All the latest energy news, all the time

Annual subscription

8.25£/month*

*billed annually at 99£/year for the first year then 149,00£/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2£/month*
then 14.90£ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.