Libya Oil Exports Plunge as NOC Cancels Cargoes due to Crisis

FILE PHOTO: A general view shows Libya's El Sharara oilfield December 3, 2014. REUTERS/Ismail Zitouny/File Photo
FILE PHOTO: A general view shows Libya's El Sharara oilfield December 3, 2014. REUTERS/Ismail Zitouny/File Photo
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Libya Oil Exports Plunge as NOC Cancels Cargoes due to Crisis

FILE PHOTO: A general view shows Libya's El Sharara oilfield December 3, 2014. REUTERS/Ismail Zitouny/File Photo
FILE PHOTO: A general view shows Libya's El Sharara oilfield December 3, 2014. REUTERS/Ismail Zitouny/File Photo

Libyan oil exports fell around 81% last week, Kpler data showed, as the National Oil Corporation cancelled cargoes amid a crisis over control of Libya's central bank and oil revenue.

The standoff began last month when western Libyan factions moved to oust a veteran central bank governor, prompting eastern factions to declare a shutdown to all oil output.

Libyan ports shipped 194,000 barrels per day (bpd) on average of crude last week, down about 81% from just over 1 million bpd in the previous week, Kpler's data showed, Reuters reported.

Although Libya's two legislative bodies said last week they agreed to jointly appoint a central bank governor within 30 days, the situation remains fluid and uncertain.

The United Nations Support Mission in Libya (UNSMIL), which is attempting to defuse the crisis, said on Tuesday it would resume facilitating talks on Wednesday in Tripoli.

NOC, which manages Libya's fossil fuel resources, has not declared force majeure on all port loadings and has so far opted to use the measure on individual cargoes, trading sources with knowledge of the matter said.

It had declared force majeure on all crude production at El Feel oilfield on Sept. 2 and on exports from the Sharara field on Aug. 7, before the crisis over the central bank began.

NOC last week cancelled several Es Sider cargoes, Reuters reported and two trading sources told Reuters NOC has also cancelled cargoes of the Amna and Brega crude grades.

Some tankers have been allowed to load crude from storage at Libyan ports to fulfil contractual obligations and avoid financial penalties, an NOC source has told Reuters.

NOC said on Aug. 28 that oil production had dropped by more than half from typical levels to about 590,000 bpd. It was not immediately clear where production levels now stand.



Saudi Arabia, US Commit to Deeper Economic Ties with Energy, Industry Deals as Trump Visits Riyadh

Crown Prince Mohammed bin Salman, Crown Prince and Prime Minister, and US President Donald Trump speak during a meeting at the Royal Palace in Riyadh, Saudi Arabia, Tuesday, May 13, 2025. (AP)
Crown Prince Mohammed bin Salman, Crown Prince and Prime Minister, and US President Donald Trump speak during a meeting at the Royal Palace in Riyadh, Saudi Arabia, Tuesday, May 13, 2025. (AP)
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Saudi Arabia, US Commit to Deeper Economic Ties with Energy, Industry Deals as Trump Visits Riyadh

Crown Prince Mohammed bin Salman, Crown Prince and Prime Minister, and US President Donald Trump speak during a meeting at the Royal Palace in Riyadh, Saudi Arabia, Tuesday, May 13, 2025. (AP)
Crown Prince Mohammed bin Salman, Crown Prince and Prime Minister, and US President Donald Trump speak during a meeting at the Royal Palace in Riyadh, Saudi Arabia, Tuesday, May 13, 2025. (AP)

Saudi Arabia and the United States signed on Tuesday energy and industry agreements as President Donald Trump visited Riyadh where he was welcomed by Crown Prince Mohammed bin Salman, Crown Prince and Prime Minister.

“The United States and Saudi Arabia share a commitment to deeper economic integration, underscoring the Kingdom’s pledge of expanding cooperation in critical sectors such as health, energy, and science,” said White House in announcing the agreements.

The US Department of Energy and Saudi Ministry of Energy concluded an agreement for cooperation in the field of energy exchanged by Saudi Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz and US Secretary of Energy Chris Wright.

“This agreement builds upon their strong existing relationship; it will focus collaboration on examining the potential for innovation, development, financing, and deployment of energy infrastructure,” said the statement.

The Saudi Ministry of Industry and Mineral Resources and US Department of Energy signed a Memorandum of Cooperation to collaborate on mining and mineral resources. “The agreement contributes to economic development and the diversification and resilience of critical mineral supply chains,” added the statement.

NASA and the Saudi Space Agency signed an agreement for a CubeSat to fly on NASA’s Artemis II test flight. Saudi Arabia’s CubeSat will measure aspects of space weather at a range of distances from Earth and deploy in high Earth orbit from a spacecraft adapter on the Space Launch System rocket after the Orion spacecraft is safely flying on its own with its crew of four astronauts.

The US and Saudi Arabia recently agreed to modernize the Air Transport Agreement to allow US airlines to carry cargo between Saudi Arabia and third countries without needing to stop in the United States, an important right for cargo hub operations. Saudi carriers will have the same rights to serve the United States.

Trump had arrived in the Kingdom earlier on Tuesday on his first overseas trip since his reelection. He will next visit the United Arab Emirates and Qatar.

Saudi Arabia and the United States also signed the largest defense sales agreement in history, worth nearly early $142 billion.