Oil prices rose Monday morning (Jan. 3) in Asia as Libya tightens supply ahead of a meeting of the Organization of the Petroleum Exporting Countries and its allies.
- Brent crude futures were up 0.40% to $78.17 a barrel.
- WTI futures were up 0.55% to $75.62 a barrel.
A damaged oil pipeline in Libya is likely to bring production to its lowest level in more than a year. Right now, workers on the ground are trying to repair the damage. The leak occurred shortly after a militia shut down the country’s largest oil field. Oil production is expected to fall by another 200,000 barrels per day in the coming week. This will be compounded by supply shortfalls due to the closure of the Sharara field. The country’s total production is expected to fall to around 700,000 barrels per day.
Meanwhile, OPEC+ will meet on Tuesday to discuss production policy in February 2022. Some investors expect the alliance to stick to its plans to increase global supply by another 400,000 barrels per day.
COVID-19 continues to be a problem. Infection rates tend to increase due to increased vacation travel and the reopening of school after the winter term break. This could lead to severe disruptions in the coming weeks.
The Spot Market is Open
Monday, January 3, 2022