The government that rules eastern Libya has announced , that he is stopping production and exports from all the oil fields he controls in protest against the decision of the Western-backed administration of the other part of the country to replace the governor of the central bank, DPA reported, quoted by BTA.
However, it is not clear whether the decision will be implemented, as the National Oil Corporation has not commented on the subject.
However, oil prices rose in afternoon trade. Brent rose 2.71 percent to $81.15 a barrel, and U.S. light crude gained 2.20 percent to $77 a barrel.
Libya has been divided in two since 2011, when longtime dictator Muammar Gaddafi was ousted.
The eastern government in Benghazi is led by Prime Minister Osama Hamad, supported by military commander Khalifa Haftar, and the western one in Tripoli, which is recognized by the UN, is headed by Abdel-Hamid Dbeybeh.
In a statement, Hamad urged "stakeholders to implement the government's decision" and added that the goal is to keep oil revenues out of the hands of illegal groups, referring to the administration in Tripoli.
Tensions between Libya's east and west rose after the administration in Tripoli decided to replace the central banker, and the east continued to support him. Observers fear that the two sides may once again reach an armed conflict.
In addition, one of the country's largest oil fields, Ash Sharara, has been out of action since early August due to protests in the area, which has so far cost the country $735 million in revenue losses.