Oil supply distortion in Libya and Kazakhstan amid the expeditious rise in Covid-19 cases worldwide has instigated a marginal increase in oil prices on Monday.
Data from rate captain reveals Brent crude climbed to $81.91 a barrel representing a 0.2% percentage gain. Meanwhile, the U.S. West Texas Intermediate (one of the main global oil benchmarks) increased by 0.2% at $79.05 per barrel.
Protest in Kazakhstan, which disrupted oil production in the country’s biggest oilfield (TENGIZ) and pipeline maintenance in Libya led to oil prices gaining 5% and adversely affecting daily production output decreasing to 729,000 per day from an initial figure of 1.3 million barrel per day in the previous year.
However, according to Chevron, Tengizchevroil, Kazakhstan’s largest oil venture has cautiously increased production, aiming to reach optimal rate after the consistent protest.
As oil supply dwindles and rising demand continues to persist, attention turns to OPEC+ (Organization of the Petroleum Exporting Countries) to restore market equilibrium, with OPEC’s Production output in December 2021 surging by 70,000 bpd.
Furthermore, The United States biggest energy firms are tenaciously adding more oil and gas rigs to breach the supply demand gap. According to Baker Hughes, oil and gas rig count rose to 588 in the week to Jan. 7
As the Covid-19 Omicron variant continues to ravage the globe, governments of developed economies such as China, Europe and U.S.A has implemented restrictions to curb the spread of the virus, while the latter has experienced stunted economic growth in terms of unemployment rate.
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.