Libyan Oil Exports Remain Effectively Suspended, Some Vessels Loading Stored Crude

Libyan oil exports remained effectively suspended on Thursday. Still, some tankers could load stored crude, but output remained restricted due to the political crisis over the central bank and oil revenues, shipping data showed.

Engineers told Reuters that the Crete Samaria tanker will enter the Libyan port of Zoetina on Thursday or Friday night to load 600,000 barrels of crude from storage before heading to Italy. They did not provide further details.

Libyan oil exports have been effectively halted for over a week due to a political crisis over central bank control. The central bank is the only legal repository of Libya’s oil revenues and pays state salaries nationwide.

Engineers told Reuters on Wednesday that another tanker, the Front Jaguar, was loading crude from a warehouse in the Libyan port of Brega.

Libya’s two legislative councils said on Tuesday they had agreed on a mechanism to resolve a dispute over the central bank.

The crisis erupted when the Western factions fired veteran central bank governor Sadiq al-Kabir on August 18, who fled the country. The Eastern factions responded by announcing a complete halt to oil production on August 26.

The National Oil Company, which oversees the country’s oil resources, said on August 28 that total oil production had fallen by more than half from normal levels to just over 590,000 barrels per day. It is unclear where production is currently taking place.

Libya, a member of the Organization of the Petroleum Exporting Countries (OPEC), produced about 1.18 million barrels per day of crude oil in July, OPEC said, citing secondary sources.