Prewar oil production topped 1.6 million barrels per day, a level that fell to nearly zero in early 2014. But violence receded in the summer as militant groups reached a political breakthrough with the internationally-recognized government. That allowed Libya to ramp up its oil output, contributing to market oversupply and the fall in prices.
However, the country’s fortunes have quickly taken a turn for the worse once again. Militants attacked Libya’s main oil export terminal in mid-December, launching rocket attacks on oil storage tanks. After two weeks of fighting, several storage tanks were set ablaze on December 25. Around 850,000 barrels of oil were destroyed in the fires.
Two major oil ports – Es Sider and Ras Lanuf – are shuttered due to violence. The government has already declared force majeure on the ports, citing the violence as a justification for its inability to export oil.
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