Oil rises on Kazakhstan, Libya supply worries

Oil storage containers are seen, amid the coronavirus disease (COVID-19) pandemic, in Los Angeles, California, U.S., April 7, 2021. (Reuters photo)

SULAIMANI (ESTA) — Oil prices rose on Monday as supply disruptions in Kazakhstan and Libya offset worries stemming from the rapid global surge in Omicron infections.

Brent crude gained 7 cents at $81.82 a barrel at 0601 GMT, while U.S. West Texas Intermediate (WTI) crude was up 7 cents at $78.97 per barrel.

Oil prices gained 5% last week after protests in Kazakhstan disrupted train lines and hit production at the country’s top oilfield Tengiz.

Meanwhile, a pipeline maintenance in Libya pushed production down to 729,000 barrels per day from a high of 1.3 million bpd last year.

“Growing supply outages in places like Libya and others have re-centered the spotlight on supply availability,” Reuters quoted RBC Capital analysts as saying.

If Russia invades Ukraine, it could disrupt Russian crude exports to Europe and push oil prices higher, the bank added.

Oil is also drawing support from rising global demand and lower-than-expected supply additions from OPEC, Russia and allies, together called OPEC+, according to Reuters.

OPEC+ output in December rose by 70,000 bpd from the previous month, versus the 253,000 bpd increase allowed under the group’s supply deal which restored output slashed in 2020 when demand collapsed under coronavirus lockdowns.

Previous Article

Iraqi CTS commander visits counter-terrorism service in Sulaimani

Next Article

U.S. warns Iran of severe consequences if Americans attacked

Related Posts