Crude oil prices extend rally on Kazakh unrest, Libya outages
by SOURAV D | VIEW 1706
On Thursday, both Brent and US WTI (West Texas Intermediate) crude oil futures had gobbled up more than a 2 per cent in gains with both benchmarks stretching out their New Year rallies, largely driven by an exacerbation of a deadly and countrywide mob unrests in Kazakhstan alongside a supply-crunch in Libya. In factuality, although Kazakh unrests had yet to take a toll on the resource-rich nation’s oil output that usually produces about 1.6 million barrels of oil per day (bpd) or roughly a 1-1/2 per cent of entire global crude oil production, media reports of deadly violence across the peace-loving former Soviet Union state that came as a surprise to many alongside a request from the country’s Government to Kremlin for militias aimed at weathering a countrywide qualm, had stoked uncertainties over a potential lag in the Opec+ member state’s output over coming days.
Crude oil extends rally as Kazakh unrest, Libya output decline weigh
Citing statistics, in the day’s global commodity market wind-down, UK crude futures’ prices gained 1.5 per cent to $81.99 a barrel, while US WTI (West Texas Intermediate) crude oil futures’ prices added 2.1 per cent to $79.46 per barrel after hitting an intra-session high of $80.24 a barrel earlier in the day.
Nevertheless, Crude Oil prices were soaring since the start of the year after OPEC+ nations had agreed to raise output by 400,000 bpd as early as by February, suggesting a sharp downturn in risks of experiencing a supply glut earlier in the year.