Experts expected that raising interest rates and halting oil exports at the same time would increase economic pressure on Libya, which has been in crises for more than 11 years.
Oil revenues decreased as a result of the closures carried out by armed elements in some oil ports in the Oil Crescent region about three weeks ago.
Oil exports fell last month to 819,000 barrels per day, compared to 979,000 barrels per day in March 2020, which is the lowest production Libya has reached during the past two years.
Libya’s daily losses amounted to $100 million, as Brent crude reached an average price of $110 per barrel.
Accordingly, the losses of Libya, during the last three weeks, amounted to about two billion dollars, without calculating the compensation that Libya will be obliged to pay to those who have suffered the harm of the suspension of exports.
disaster warning
The National Oil Corporation warned of an environmental disaster that would strike Libya due to the suspension of work at the port and the pressure caused by the lack of unloading, and said that it was not prepared to absorb all the stored quantities.
She added that the oil tanks also need maintenance from a while, while the conditions in Libya did not allow this.
And allowed the armed groups that took control of the field to resume work in a limited way, to avoid an environmental disaster, and a Chinese ship loaded with oil barrels moved after completing its cargo of one million barrels.
The economic expert, Musab Al-Lafi, said in a statement to “Sky News Arabia”, that the warning issued by the National Corporation is serious, and the infrastructure of the Libyan oil fields cannot withstand stopping production, and this will at one time lead to an environmental crisis represented by an oil leak or the outbreak of fire.
He added that until now, Libya is suffering from tank fires in Tripoli and the Oil Crescent.
It is likely that Libya has lost about a trillion dollars in the oil sector, since 2011, only because of the closures and the weak infrastructure of the entire sector.
He pointed out that the political strife in the country should be far from the oil sector, as it is a main source of income for Libyans.
He explained that oil prices are at their highest, and as soon as there is a breakthrough in the Russian-Ukrainian crisis, they will collapse again, and Libya will miss the opportunity to exploit these gains.
heavy losses
For his part, Libyan political analyst Ibrahim Al-Fitouri told “Sky News Arabia”, that the situation in Libya is getting worse due to the actions of the militias.
He added that the absence of the state gave the militias an opportunity to tamper with the capabilities of the people, and explained that Libya’s losses amount to fifty million dollars per day, in addition to the compensation borne by the state for not complying with the contracts.
He called for the necessity of assigning a joint security force to protect oil to stop the bleeding of losses, pointing out that a quarter of a billion dollars a week was wasted as a result of the halt, i.e. a billion dollars a month.
Member of Parliament Ali Al-Takbali blamed the outgoing prime minister for the oil crisis, Abdul Hamid Al-Dabaiba, warning of the outbreak of a state of mass civil disobedience.
Al-Takbali said, through his account on the social networking site “Facebook”, “The foolish policies led by those behind Dabaiba, with the help of the great friend, will lead to a series of oil closures.”
He continued: “And then to the comprehensive civil disobedience, it is not reasonable for a failed government to enjoy the welfare of the Libyans and deprive them of all the necessities of a decent life.”
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