Oil prices rose on Monday as supply disruptions in Kazakhstan and Libya offset concerns over the rapid global rise in Omicron infections.
Brent crude rose 16 cents, or 0.2%, to $81.91 per barrel at 0406 GMT, while West Texas Intermediate (WTI) crude was up 15 cents, or 0.2%, to $79.05 per barrel.
Oil prices rose 5% last week after protests in Kazakhstan disrupted train lines and hit production at Tengiz, the country’s largest oil field.
Kazakhstan’s oil production is gradually increasing, Chevron said on Sunday. He said Kazakhstan’s largest oil venture, Tengizchevroil (TCO), has gradually increased production to reach normal rates at the Tengiz field after limited production caused by recent protests.
Developing eight years after Russia’s seizure of the Crimean Peninsula from Ukraine, the possibility of Russia’s invasion of Ukraine has been the focus of investors. This situation may interrupt Russia’s crude oil exports to Europe and increase oil prices.
Oil is also receiving support from rising global demand and expected controlled supply additions from the Organization of the Petroleum Exporting Countries and its allies.
OPEC’s output in December increased by 70,000 barrels from the previous month, compared to the 253,000 barrel increase allowed under the OPEC+ supply agreement.
U.S. energy companies kicked off the new year by continuing to add oil and gas rigs, an early indicator of future production, after increasing the number of rigs in 2021 after two years of decline.
In Baker Hughes’ report Friday, the oil and gas rig count, rose two to 588 in the week to January 7, became its highest since April 2020.
Globally, governments from Europe to China to India are continuing to take some precautions as they grapple with the highly contagious Omicron variant, which remains the main factor keeping prices under pressure.
Employment in the United States increased less than expected in December due to worker shortages, and job gains may remain modest in the near term as rising COVID-19 infections disrupt economic activity.