Oil prices jumped substantially on Thursday, extending a rise from the previous session, on rising turmoil in OPEC+ oil producer Kazakhstan and supply interruptions in Libya,By 1054 GMT, global benchmark Brent oil futures had risen $1.09, or 1.4 percent, to $81.89 a barrel. WTI oil futures in the US increased by $1.17, or 1.5 percent, to $79.02 a barrel. Both contracts were at their highest points since late November.
On Thursday, Russia dispatched paratroopers to Kazakhstan to assist in quelling a nationwide revolt that had erupted after fatal violence erupted across the tightly controlled former Soviet republic.”Kazakhstan political situation is growing increasingly volatile,” Commerzbank stated.”Today, this is a country that produces 1.6 ML bpd oil,” the author writes.So yet, there is no evidence that oil output has been harmed.
Due to pipeline maintenance and oilfield shutdowns, Libyan oil output has been reduced by roughly 500,000 barrels per day.Despite an increase in fuel supplies in the United States last week, prices increased.As refinery supplies backed up due to decreasing fuel demand, US crude oil stocks fell last week, but gasoline inventories rose by more than 10 million barrels, the greatest weekly gain since April 2020.
Also weighing on risky assets like oil were minutes from a US Federal Reserve meeting that suggested officials may hike rates faster than investors expected.”We see the need for additional OPEC+ barrels,” the bank stated, citing indicators of demand despite the Omicron variant, low stockpiles, and rising market sensitivity to supply disruptions.