The Magazine for Asian Investors
Oil prices fell Monday morning (Jan. 10) as a sharp increase in Omicron cases weighed on economic activity in many countries. In addition, there are further supply cutbacks in Kazakhstan and Libya.
- Brent crude fell 38 cents, or 0.46%, to $81.37 a barrel.
- WTI crude fell 34 cents, or 0.43%, to $78.56 a barrel.
U.S. domestic nonfarm payroll employment grew at a slower-than-expected pace in December. Given the labor shortage problem, employment growth is expected to remain moderate. In addition, rising COVID-19 rates have led to new restrictions in many places, such as home working.
After a two-year decline, U.S. energy companies have begun to steadily increase oil and gas rig counts. The rising oil and gas rig count is a preliminary indicator of future production.
However, supply disruptions in other parts of the world tend to support prices.
Production in Libya fell to 729,000 barrels per day from a peak of 1.3 million barrels per day last year. This is partly due to maintenance work on the pipelines but also to the takeover of oil fields by militias. In Kazakhstan, meanwhile, unrest is declining somewhat after help led by Russian soldiers pushed back the protesters.
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Monday, January 10, 2022