Oil Revenues Key To Conflict In Libya

Amidst renewed violence, UN-sponsored peace talks are unlikely to bridge the political divide that is threatening to tear the country apart.

Fighting erupted in Benghazi on 15 October, as military strongman Khalifa Haftar unleashed his forces on Jihadist groups controlling the city. The assault was accompanied by air strikes reportedly carried out by Egypt’s air force.

The Benghazi clashes came after heavy fighting in the town of Kikla near Tripoli, and indicate that the two rival governments and their militia allies are too entrenched in their positions to reach a political solution to the standoff.

Amidst growing uncertainty over who receives revenues from resurgent crude sales, there are suggestions that both sides are banking on sustaining themselves with oil money, risking renewed sanctions and a steep drop in exports. (CONTINUED - 1323 WORDS)