Libya’s oil production tops 1 million barrel per day after political standoff ends

Libya’s oil production exceeded 1 million barrels per day (bpd) on Sunday for the first time since August, Bloomberg reports citing unnamed industry sources. Oil production in the north African country had been largely suspended for over a month because of dispute over control of the Central Bank of Libya, which plays a central role distributing oil revenues. Rival administrations in the east and west of the country agreed at the end of September on the selection of new leadership at the bank, paving the way for oil production to resume.

Libya used to produce about 1.2 million bpd of oil before the latest political standoff. The resumption of production will add a few hundred thousand barrels per day to the global market, which is already facing concerns about supply shortages from the Middle East. The end of the crisis in Libya is a positive development for the global oil market and could help alleviate some of the pressure on prices.