The Eastern Libya Government Plans to Halt Oil Production and Export – Media.

The government of the eastern part of Libya, where the largest oil reserves of the country are located, has announced that it will halt the production and export of the resource, Bloomberg reports.

Brent oil jumped by 3% to over $81 a barrel after the eastern authorities announced that "force majeure circumstances" apply to all fields, terminals, and oil facilities.

The Waha Oil Co., which supplies oil to the country’s largest export terminal, Es Sider, said it would begin to gradually reduce deliveries.

Deep political differences in the east and west of Libya, despite the ceasefire agreement until 2020, often lead to fights and blockades aimed at the country's most valuable resource – oil.

Libya sits on the largest known oil deposits in Africa, but production has suffered after a decade of political strife.

Clashes between armed groups loyal to various factions or individuals are commonplace, sometimes leading to the closure of key oil fields, the agency writes.

Last month, the country produced a total of about 1.15 million barrels of oil per day, according to data collected by Bloomberg.

Since then, the country’s largest oil field, Sharara, which produced nearly 270,000 barrels per day, has stopped. The Sirte Basin, where most of Libya's oil reserves are located, and the country's four oil export terminals are in the east of the country.

Recall that Libya is politically divided between the East and the West. The internationally recognized government in the capital Tripoli does not control the eastern territories of the country.

Source: Economic Truth