• 3 minutes Australian power prices go insane
  • 7 minutes Wind droughts
  • 11 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 22 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 40 mins Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 9 hours Changing Gazprom ADRs to Russian shares
  • 19 hours Is Europe heading for winter of discontent with extensive gas shortages?
  • 2 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 5 days "How China Could Send LNG Prices Into The Stratosphere" by Irina Slav
  • 4 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 6 days The Federal Reserve and Money...Aspects which are not widely known
  • 7 days How Far Have We Really Gotten With Alternative Energy
Julianne Geiger

Julianne Geiger

Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.

More Info

Premium Content

Oil Markets On Edge Over Potential Libyan Civil War

  • Protests have erupted across Libya over armed militia presence, soaring inflation and power outages.
  • Key oilfields and ports have been closed since April due to the ongoing political crisis.
  • The already-battered oil market could face further supply disruptions if Libya descends into civil war.

As protests continue to rock Libya, with demonstrators setting fire to the House of Representatives in the eastern city of Tobruk and Libyans in the capital Tripoli demanding action against armed militias, soaring inflation, and power outages— global oil markets are on edge over the specter of another civil war. 

Since mid-April this year, key oilfields and ports have been closed due to protests stemming from a political crisis that has rival factions scrambling to secure control over oil facilities and oil revenues. 

Prior to this, Libya was producing around 1.2 million crude oil barrels a day. Today, the country is producing about 85% less, though exact figures are difficult to come by, with the Oil Ministry and the National Oil Company (NOC) not cooperating with data. 

Libya’s Tripoli-based Central Bank says the country has officially lost $3.5 billion in the first half of this year due to oilfield closures as deadly protests erupt to challenge the political stalemate. 

The first six months of 2022 saw Libya collect 37.3 billion dinars from oil sales. That amount reflects a 100 million dinars less in oil sales compared to the first five months of last year. 

Negotiations between rival factions, east and west, have been ongoing in both Cairo and Geneva, with no agreement in sight over a framework that would make it possible to hold free and fair elections. 

“There are many reasons why protesters have decided to take to the streets in anger. But they can be summarised simply by the failure of the politicians to reach a political accord and their preference instead to wrestle with each other over power at the expense of ordinary citizens,” Libyan academic and writer Ahmed Mayouf told Al Jazeera. Related: Why Putting A Price Cap On Russian Oil Won’t Work

A key issue is control of oil production and revenues. 

The stalemate has most recently prompted the United Nations and US officials to suggest that Libya’s oil revenues be managed by third-party caretakers to ensure equitable distribution and end the impasse.  

UN Advisory on Libya, Stephanie Williams, last week called for a temporary mechanism to manage oil revenues, saying that with this, the power rivalry could last indefinitely. Such a move would essentially mean appointing a foreign trustee to oversee Libya’s oil wealth. 

US Ambassador to Libya Richard Norland has likewise suggested a trusteeship for Libya’s oil revenues. 

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News