On Tuesday, January 28, 2025, protests at Libya’s Es Sider and Ras Lanuf oil ports blocked crude oil loadings, putting approximately 450,000 barrels per day (bpd) of exports at risk, according to five engineers and a shipping source cited by Reuters.
Protesters’ Demands
In a statement addressed to Libya’s state-run National Oil Corporation (NOC) dated January 5, protesters demanded the relocation of several oil company headquarters to the Oil Crescent region and called for equitable development of the coastal area to improve local living conditions.
“All we want is equality,” said Houssam El Khodor, one of the protesters, in an interview with Reuters. “The oil is produced in our regions, and all we get from it is the toxic fumes.”
The Oil Crescent, which includes the ports of Es Sider, Brega, Zueitina, and Ras Lanuf, accounts for roughly half of Libya’s total oil exports. Currently, many of the country’s oil company headquarters are based in the capital, Tripoli.
An NOC spokesperson did not immediately respond to a Reuters request for comment.
Impact on Exports and Oil Markets
Libya’s crude oil production recently reached 1.4 million bpd, according to an official statement on NOC’s X account, about 200,000 bpd below its pre-civil war peak. However, it remains unclear if the current blockade has directly impacted production levels so far.
A loading programme reviewed by Reuters revealed that Es Sider was on track to export approximately 340,000 bpd of crude in January, with another 110,000 bpd scheduled from Ras Lanuf.
Brent crude prices rose by 61 cents to $77.69 per barrel as of 12:32 GMT, with analysts partially attributing the increase to the Libyan outage. However, weak manufacturing data from China and warmer northern hemisphere weather have kept prices near two-week lows.
Historical Disruptions
This is not the first time protests have disrupted Libya’s oil operations. In August of the previous year, a protest over the position of the central bank governor led to a shutdown of around 700,000 bpd. That disruption lasted over a month before production gradually resumed in October.
The latest protests come amid broader discussions within the Organization of the Petroleum Exporting Countries (OPEC), of which Libya is a member. OPEC is reviewing its strategy for gradually increasing oil output in response to calls from U.S. President Joe Biden to lower oil prices.
As tensions persist, the situation threatens to further impact Libya’s oil industry and global markets.
(Reuters)