Libya Faces Oil Crisis Amid Political Turmoil

Libya, which boasts the largest oil reserves in Africa, is grappling with a deepening political and economic crisis. The recent ousting of Central Bank Governor Sadiq Al-Kabir has ignited a fierce power struggle between competing factions, severely disrupting the nation’s oil production and halting exports. With 90% of Libya’s income dependent on oil, control of the Central Bank has become a critical battleground, and the ongoing conflict threatens to paralyze the economy.

Oil output has plummeted as a result, sparking concerns of growing instability. International bodies, including the United Nations, are attempting to mediate between the rival groups, but the situation remains highly volatile. The outcome of these efforts will be crucial for Libya’s economic future.

In a conversation with Mohamed Eljarh, an energy expert, and Managing Partner at Libya Desk, he emphasized the importance of a swift resolution, warning that prolonged disruption could have devastating effects on Libya’s economy and its oil-dependent income.