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East Vs. West: Libya’S Oil Freeze Amid Ongoing Political Turmoil
(MENAFN- The Rio Times) Today, Prime Minister Osama Hammad of eastern Libya declared a halt to all oil production and exports.
This bold move, a declaration of "force majeure," reflects escalating tensions with the Tripoli-based government.
Such disputes underscore a nation deeply divided by political strife since Muammar Gaddafi's fall in 2011.
Libya's landscape is split between the internationally recognized Government of National Unit in Tripoli and the eastern faction supported by the Libyan National Army.
Central to their conflict is the control of Libya's significant oil reserves, ranked tenth globally. Prior to the civil war in 2011, Libya produced over 1.6 million barrels of oil each day.
The cessation targets the leadership issues at the Central Bank of Libya, with threats to stop oil operations tied to disputes over its governorship.
Such economic maneuvers spotlight the critical role oil plays in Libya's economy and the broader geopolitical implications.
The announcement triggered immediate increases in global oil prices. West Texas Intermediate crude rose by 2.66%, reaching $76.83 per barrel.
Similarly, Brent crude increased by 2.63%, hitting $81.09 per barrel. These surges reflect the world's reliance on Libyan oil and the potential instability in supply.
This halt not only threatens Libya's economic stability but also influences global oil markets.
Background
Libya, once a beacon of stability in North Africa, now grapples with chaos stemming from dual governments: one in Tripoli and the other in Benghazi, each controlling different territories.
Gaddafi ruled with an iron fist for over four decades, suppressing opposition and isolating Libya internationally.
The Arab Spring, which swept through the Arab world in 2011, sparked peaceful protests in Libya that soon escalated into a civil war. With NATO 's support, the rebels overthrew Gaddafi.
However, the dictator's fall didn't bring peace. The absence of a strong state led to power vacuums quickly filled by various armed militias.
Meanwhile, tribal and regional tensions exacerbated the conflict. Additionally, foreign powers meddling in Libya's affairs further complicated the reconciliation process.
This bold move, a declaration of "force majeure," reflects escalating tensions with the Tripoli-based government.
Such disputes underscore a nation deeply divided by political strife since Muammar Gaddafi's fall in 2011.
Libya's landscape is split between the internationally recognized Government of National Unit in Tripoli and the eastern faction supported by the Libyan National Army.
Central to their conflict is the control of Libya's significant oil reserves, ranked tenth globally. Prior to the civil war in 2011, Libya produced over 1.6 million barrels of oil each day.
The cessation targets the leadership issues at the Central Bank of Libya, with threats to stop oil operations tied to disputes over its governorship.
Such economic maneuvers spotlight the critical role oil plays in Libya's economy and the broader geopolitical implications.
The announcement triggered immediate increases in global oil prices. West Texas Intermediate crude rose by 2.66%, reaching $76.83 per barrel.
Similarly, Brent crude increased by 2.63%, hitting $81.09 per barrel. These surges reflect the world's reliance on Libyan oil and the potential instability in supply.
This halt not only threatens Libya's economic stability but also influences global oil markets.
Background
Libya, once a beacon of stability in North Africa, now grapples with chaos stemming from dual governments: one in Tripoli and the other in Benghazi, each controlling different territories.
Gaddafi ruled with an iron fist for over four decades, suppressing opposition and isolating Libya internationally.
The Arab Spring, which swept through the Arab world in 2011, sparked peaceful protests in Libya that soon escalated into a civil war. With NATO 's support, the rebels overthrew Gaddafi.
However, the dictator's fall didn't bring peace. The absence of a strong state led to power vacuums quickly filled by various armed militias.
Meanwhile, tribal and regional tensions exacerbated the conflict. Additionally, foreign powers meddling in Libya's affairs further complicated the reconciliation process.
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