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Libya’s oilfields closing down over central bank standoff

Published

3 weeks 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.

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Ezz al-Arab appointed as Egypt’s CIB chairman

Published

3 hours ago

September 16, 2024

Ifeoluwa Dada

Commercial International Bank (CIB), Egypt’s largest private bank, announced on Monday that long-time chairman and previous CEO Hisham Ezz al-Arab will become CEO.

Neveen Sabbour, a board member, will take over as chairman, according to a statement. Hussein Abaza, the outgoing CEO, will be replaced by Ezz al-Arab, who will hold the role for three years.

In Egypt, the market share held by traditional banks is expected to reach US$35.84 billion. As more clients choose online and mobile banking options, Egypt’s banking industry is seeing an increase in digital banking services.

The new appointments are part of “to lead the bank’s multifaceted business transformation and continue its programme to support recognised potential future leaders,” the announcement stated.

Ezz al-Arab, chairman and managing director since 2002, resigned in October 2020 due to “compliance concerns” from the national bank.

In August 2022, a year before his tenure expired, central bank governor Tarek Amer resigned due to a currency crisis. Ezz al-Arab was requested to rejoin as chairman in December.

VenturesNow

Nigerian inflation falls again, drops to 32.15% in August

Published

3 hours ago

September 16, 2024

Ifeoluwa Dada

Nigeria’s August inflation rate declined for a second month to 32.15% from 33.40% in July, the statistics office reported on Monday. This comes after the month of July saw the first decrease in consumer inflation in Africa’s largest country in almost a year.

Analysts predict August’s slowdown may be short-lived after two gas price increases this month enraged citizens facing the worst cost-of-living crisis in a generation.

The removal of a decades-old gasoline subsidy, devaluation of the naira currency, and increase in energy costs by President Bola Tinubu have raised prices.

Reforms attempt to boost economic growth and public finances.

The central bank’s next interest rate decision next week may be influenced by inflation figures. The apex bank has hiked rates four times this year to curb inflation, and economists say July’s hike may be the last.

Further petrol price increases and northern flooding that swept away crops could raise food prices.

“On the whole, disinflation should continue with the headline rate falling below 30% by year-end, but upside risks remain,” Capital Economics Africa analyst David Omojomolo wrote.

He claimed rising petrol prices might “slow the pace of the disinflation process” and that the central bank would not drop rates until early next year.

Food inflation dropped from 39.53% to 37.52% in August. It remained the greatest inflation driver in August.