The recovery of the Libyan oil sector hinges on finding a political solution that includes the country’s various power groups in a future government.

Despite heavy fighting in Tripoli and Benghazi that claimed around 50 lives, oil production is beginning to recover from a dip early in the week, and several tankers are scheduled to lift crude from terminals where exports have been patchy in the past.

Output edged up to around 500,000 b/d as MEES went to press, according to...