Strikes at oil fields in Libya’s east could reduce output further, blunting a production revival even as a political standoff leaves the sector on the brink of collapse.

Oil output is hovering between 800,000-900,000 b/d, with state-owned National Oil Corporation (NOC) refusing to give precise numbers.

Workers striking at three fields in the oil rich Sirte Basin region have threatened to shut down another field if their demands are not met. Strikers have kept the Eni-operated...