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Libya’s oilfields closing down over central bank standoff

Published

4 months ago

August 28, 2024

According to two field engineers who spoke to Reuters, an ongoing political dispute over who controls the central bank and oil income led to the Sarir field almost completely stopping production on Wednesday.

Authorities in the east of Libya, where most of the country’s oilfields are located, said on Monday that they would stop all exports and production.

The experts said that Sarir was making around 209,000 barrels per day (bpd) before the output was cut.

Exports from the 300,000 bpd Sharara oilfield were already stopped because of “force majeure.” This week, Reuters reported problems at El Feel, Amal, Nafoora, and Abu Attifel.

Libya was a member of OPEC in July and was making about 1.18 million barrels of oil per day.

The move to cut off Libya’s main source of income comes after the Tripoli-based Presidency Council fired Sadiq al-Kabir as head of the Central Bank of Libya (CBL). This caused rival armed groups to get ready to fight.

This week, Prime Minister Abdulhamid al-Dbeibah, who was elected by the Libyan people through a process backed by the UN in 2021, said that oil areas should not be shut down “under flimsy pretexts.” General Michael Langley, head of U.S. Africa Command, and Chargé d’Affaires Jeremy Berndt met Khalifa Haftar on Tuesday. Haftar is in charge of the Libyan National Army, which rules the east and south of the country.

“The United States urges all Libyan stakeholders to engage constructively in dialogue,” the U.S. Embassy in Libya said on social media site X that the UN Support Mission in Libya and the rest of the world were behind them.

A comparison As of 10:39 GMT, Brent oil prices were down 1.2% to $78.35 per barrel. This was because of worries about Chinese demand and the possibility of a wider economic slowdown, which cancelled out worries about possible supply losses from Libya and other places.

Related Topics:Featured Libya Libya's oilfields

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Moroccan annual inflation rises to 0.8% in November

Published

3 days ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

VenturesNow

Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

4 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”