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USA: Libyan leaders must recognize oil shutdown has repercussions across global economy

USA: Libyan leaders must recognize oil shutdown has repercussions across global economy

The U.S. Embassy in Libya said that responsible Libyan leaders must recognize that the shutdown harms Libyans throughout the country and has repercussions across the global economy, and should end it immediately.

“The United States is deeply concerned by the continued oil shutdown, which is depriving Libyans of substantial revenue, contributing to increasing prices, and could lead to electricity blackouts, water supply problems, and fuel shortages,” the Embassy said in a statement on Wednesday.

The damage the shutdown is causing to oil infrastructure will cost Libya additional millions, risks an environmental disaster, and could impact the country’s ability to utilize this infrastructure in the future to reach its full production potential, the statement pointed out.

The United States reminds Libyan leaders of the multiple UNSCRs that protect the National Oil Corporation and reaffirms our commitment to work with Libyan leaders on a mechanism that will give the Libyan people confidence that the country’s revenues are being distributed for the benefit of the Libyan people, it said.

Prior to the shutdown, the United States had recommended an incremental transfer of revenue subject to monitoring and oversight by a Libyan-led financial mechanism; however, Libyan leaders independently decided to make more substantial transfers, it added.

The United States considers the shutdown of Libyan oil production to be a hasty response that hurts the Libyan people and undermines international confidence in Libya as a responsible actor in the global economy, according to the statement.