The Sharara oil field, the largest in Libya, has completely ceased its oil production on Monday. This event was recorded over the weekend, where a progressive decrease was recorded due to strong protests.
Libya’s largest oil field comes to a standstill
This important field, with a capacity to extract more than 300,000 barrels of crude oil per day, had registered a production of approximately 270,000 barrels last Saturday. However,oil production began to be graduallyreduced as workers at the field received orders to do so from the same day, according to anonymous sources.
Libya’s internationally recognized government accused the rival administration in the east of the country of using “political blackmail” as a tool following protests that led to the reduction of operations at Sharara. In its statement, the government explained that the production decline was the result of extortion, although no additional details were provided on these claims.
Separately, it was reported last Saturday that protesters at the field forced personnel to reduce production, based on statements from two engineers working at the site who asked not to be identified. Sharara has become a frequent target of the various warring political and military factions within Libya.
This is not the first closure Sharara has suffered this year. In January, the oilfield was shut down by protesters demanding greater government involvement in regional issues, including job creation and increased investment in the region. was shut down by protesters demanding greater government involvement in regional affairs, including job creation and increased investment in the local economy.
Despite the production disruption in Libya, oil prices continued to fall on Monday, dragged down by rising concerns about global demand and fears of a tentative “recession” in the United States.
In recent weeks, the market has overlooked supply concerns as nervousness over the evolution of global oil demand has grown. Fears about demand in China have expanded into concerns about the health of the world’s largest economy, the United States, causing crude oil prices to fall, despite the reduction in supply.
Follow us on social networks and don’t miss any of our publications!
YouTube LinkedIn Facebook Instagram X
Source: OilPrice
Photo: Shutterstock
Loading...
