Renewed fighting over Libya’s oil terminals has revived east/west divisions and split the state oil company. Political stability remains a forlorn goal.

Libya’s brief period of relative stability over the past six months which enabled it to boost oil output to around 700,000 b/d for the first two months of the year, has come crashing down as a Benghazi militia wrested control of two key export terminals from the self-styled Libyan National Army (LNA). The shutdown of the two...