US News reported that oil prices continued to fall on Wednesday by more than 4% compared to Tuesday amid expectations that the political conflict that is halting Libyan exports may be resolved.
The website explained that Brent crude futures for November fell by 37 cents, saying that there are indications of an agreement between the House of Representatives and the High Council of State to jointly appoint a governor for the Central Bank, which may defuse the struggle to control oil revenues that sparked the conflict.
Last Monday, Reuters reported that oil exports had stopped from main Libyan ports, and production was halted across the country. Last Thursday, the National Oil Corporation confirmed that daily oil production had fallen to less than 600 barrels per day, indicating a loss of more than $120 million during the first three days after the start of reducing oil production.
On August 26, the head of the parallel government declared a state of force majeure on all oil fields, ports and facilities, halting oil production and exports due to the Central Bank crisis.
The decision to shut down oil came in response to the appointment of a new governor and board of directors for the Central Bank by the Presidential Council, which gave the authority to resume work at the CBL to an interim governor, Abdel Fattah Ghaffar, until the governor the Presidential Council appointed, Mohammed Al-Shukri, officially assumes his duties.
