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on monday (september 2nd) local time, the libyan national oil corporation (noc) announced on its official website that its el-feel oil field encountered "force majeure".

this means that the key elfer oil field will not be able to fulfill its contractual obligations, that is, to suspend oil production. according to the media, this result is due to the fact that two major factions in libya are fighting for control of the country's central bank.

source: libya national oil corporation official website

libya has been in turmoil since the overthrow of the gaddafi regime in 2011. the un-recognized government of national accord and the armed forces supporting it control parts of the west, while the house of representatives has formed an alliance with the "national army" and controls most of the east and south.

a week ago, the libyan presidential council, which controls the west, announced the replacement of the country's central bank governor. dissatisfied with this, the eastern authorities immediately ordered all oil fields and ports under their control to experience force majeure and suspend oil production and exports.

as a member of opec, libya's economy is particularly dependent on its oil resources, and the central bank manages billions of dollars in energy revenues and is arguably libya's most important financial institution.

data shows that before this, libya's daily crude oil production was about 1 million barrels, most of which came from the east. after the eastern production was stopped, the country's daily production dropped sharply to about 450,000 barrels. at that time, the international oil price benchmark brent crude oil price once rose above $80 per barrel.

combined with the suspension of production at elfir in the southwest today, libya's daily oil production will further decrease by about 70,000 barrels. during the day, brent crude oil closed up 0.47% at $77.29 per barrel. analysts believe that the suspension of production at libyan oil fields has helped opec+ tighten the market supply and demand relationship.

earlier media reports said six sources from opec+ revealed that the organization will increase oil production as planned from october, as the supply disruption in libya and the production cuts promised by most member countries to make up for the excess production offset the impact of sluggish demand.