Fire at Libya's Sharara Pipeline Cuts Oil Production by Half

A fire triggered by a pipeline leak at Libya's Sharara oil field has forced a significant reduction in output, according to the National Oil Corp (NOC). The incident has effectively cut production at the field, one of the nation's largest, by approximately 50%. With a total capacity of 330,000 barrels per day, the disruption results in an immediate loss of roughly 165,000 barrels per day to the global market. This supply shock comes as markets are already grappling with heightened geopolitical tensions in the Strait of Hormuz and Iran. As a key supplier to Europe, any prolonged disruption in Libya is expected to compound the global supply deficit. Consequently, analysts anticipate further upward pressure on Brent Crude and WTI Crude prices as the situation develops.