Libyan Oil Revival Less Likely as East-West Standoff Escalates

  • Dispute threatens to further reduce OPEC member's oil output
  • Authorities block a shipment of crude oil from eastern port
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The odds of a Libyan oil revival are diminishing amid intensifying conflict between factions that is crippling production and exports.

After failing to sell a cargo independently of Libya’s National Oil Corp. in Tripoli, eastern officials told state-owned Arabian Gulf Oil Co., which controls production in the region, not to allow tankers to depart without its approval. This week, they barred the SeachanceBloomberg Terminal tanker from exporting 1 million barrels of crude from the port of Hariga, saying it didn’t have the correct papers.