Tensions in Kazakhstan and Production Cuts in Libya Drive Up Oil Prices

Crude oil futures closed higher on Thursday (Jan. 6), boosted by unrest in OPEC+ member Kazakhstan. This was compounded by reports of lower oil production in Libya.

  • WTI crude futures were up $1.61, or 2.1%, at $79.46 a barrel.
  • BRENT crude futures were up $1.19, or 1.5%, at $81.99 a barrel.

Crude oil futures rose after it was reported that Russia had sent paratroopers to Kazakhstan to keep the peace. Earlier, the population had protested against the high oil prices, and the government announced its resignation.

An energy analyst at Commerzbank Research said oil prices rose after reports of political tensions in Kazakhstan, as Kazakhstan is a country with rich oil reserves. It is also a member of the OPEC+ group, which currently produces 1.6 million barrels of oil per day.

Meanwhile, oil production in Libya has declined by more than 500,000 barrels per day due to the closure of several oil wells, including the closure of oil pipelines for maintenance.

Besides, OPEC+ is sticking to the original agreement to increase oil production to only 400,000 barrels per day in February.

The next OPEC+ meeting will be held on February 2, where the production policy for March will be discussed.

The Spot Market is Open

Friday, January 7, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
09.50

80.17

+0.71

0.89%

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