(Bloomberg) -- Oil loadings from two key Libyan ports are being brought to a standstill as protests hinder about a third of the OPEC member’s crude exports, a reminder of global supply risks from ongoing tensions in the North African country.
The stoppages get underway on Tuesday at Ras Lanuf and Es Sider — which between them handle more than 400,000 barrels a day — after they were ordered by the so-called Oil Crescent Region Movement, two people with direct knowledge of the situation said. One tanker at Es Sider has already stopped loading, one of the people said.
Libya has been an on-off oil supplier to the world after the ouster of long-time ruler Moammar Al Qaddafi resulted in a power vacuum more than a decade ago. Any prolonged curtailment of exports would add to uncertainty about flows from Russia following tough sanctions on Moscow earlier this month. Even so, industry expectations are for a surplus in 2025.
Brent oil futures rallied, having earlier been little changed. They rose as much as 81 cents to $77.89 a barrel and were at $77.54 at 8:21 a.m in London.
Both ports are in the east of the country, where the majority of the nation’s crude production is located.
Es Sider typically receives 300,000-320,000 barrels a day from the country’s fields, while Ras Lanuf gets 130,000-140,000 barrels a day. Libya’s east has total output of 900,000 barrels a day, highlighting the wider supply risks should disruption spread.
The halts are the latest drama in Libya’s longstanding battle to maintain production. The country remains split between an internationally recognized government in the west and a rival legislature in the east, where military commander Khalifa Haftar holds sway.
On Jan. 5, the Oil Crescent Region Movement said it would move to block output and exports if the state-run National Oil Corp. didn’t transfer the headquarters of five energy companies from west to east, where the firms have operations and terminals.
The NOC on Jan. 27 put the country’s total daily crude production at 1.41 million barrels. Exports in December stood at about 1.2 million a day, tanker tracking compiled by Bloomberg shows.
Libya is home to Africa’s largest crude reserves and the industry is a frequent target of factions and powerbrokers vying for political influence. Besides Ras Lanuf and Es Sider, eastern Libya has three other oil ports.
--With assistance from Prejula Prem and Sherry Su.
(Updates with oil price gain in fourth paragraph.)