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Oil Up, but Kazakh Protests, Decreased Libyan Output Stoke Supply Fears -Breaking

by Mike Robinson

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© Reuters.

By Gina Lee

Investing.com – Oil was up on Friday morning in Asia. However, this has triggered fears of a disruption in crude oil supply by the Organization of the Petroleum Exporting Countries (OPEC+), producer along with decreased production from Libya.

The price of oil rose by 0.74%, to $82.60 at 10:12 ET (11:12 GMT), and fell by 0.79% to $80.09. Brent futures and WTI futures rose above $80 by 10:12 PM ET (3:12 AM GMT) and rose 0.79% to $80.09.

Louise Dickson, Rystad Energy analyst said that the upward rise in oil prices mainly reflects market jitters due to unrest in Kazakhstan. The political situation in Libya continues deteriorate which sidelines oil production.

The government has declared a state of emergency in Kazakhstan, after days of unrest that began in the country’s oil-rich western regions after price caps on butane and propane were removed on New Year’s Day. Russia sent paratroopers Thursday to put an end to the unrest.

At the moment, concerns about supply overshadow those regarding fuel demand and the impact of the micron COVID-19 version on it.

OPEC+’s earlier supply increases did not keep pace with the demand growth, as announced by them. The cartel’s output in December 2021 rose by 70,000 barrels per day from November, falling short of the 253,000-bpd increase allowed under its 2021 supply deal.

Due to pipe maintenance, Libya’s production fell to 729,000 barrels/day, from the high of 1.3million bpd in 2013.

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