Oil rallies on unrest in Kazakhstan, Libyan outages and Russia pipeline flowed in reverse – 17th consecutive day.

On Thursday, oil prices rose sharply due to escalating unrest at OPEC+ oil producer Kazakhstan, and supply outages from Libya.

Wholesale gas prices in Britain and Europe rose once more on Thursday, as gas supplies from a major pipeline which normally carries gas from Russia into Europe flowed in reverse. This was for the 17th consecutive day.

Some European Union legislators have accused Russia of restricting gas flows in order to get approval for Nord Stream 2, which will deliver gas to Germany, to supply around a third of Europe’s gas.

Russia refutes the claims and states that the pipeline will increase gas exports and lower European prices.


Russia sent paratroopers to Kazakhstan on Thursday in an effort to quell a nationwide uprising following the spread of deadly violence across the former Soviet Union.

Commerzbank stated that the political situation in Kazakhstan was becoming tenser.

“And this country is currently producing 1.6 million barrels per day of oil.”

So far, there are no signs that oil production was affected.

Due to oilfield closures and pipeline maintenance, Libya’s oil production is now down more than 500,000 barrels per hour

Prices rallied despite a surge in U.S. fuel stocks last week.

U.S. crude oil stocks fell last week, while gasoline inventories grew more than 10,000,000 barrels. This is the largest weekly increase since April 2020.

Minutes from the U.S. Federal Reserve meeting showed that policymakers might raise rates faster than markets expect. This weighed on oil and other riskier assets like oil. [MKTS/GLOB]

OPEC+, a group that includes members of the Organization of the Petroleum Exporting Countries (OPEC), Russia, and other producers, agreed Tuesday to increase February’s supply by 400,000 bpd, as it has done every month since August.

JP Morgan analysts stated in a note that “our reference case now assumes that the alliance will fully eliminate the remaining 2.96million bpd oil production cuts by September 20,22.”

The bank stated that signs of demand outweighing the Omicron variant, low stock levels and increased market vulnerability to supply disruptions make it necessary for more OPEC+ barrels. JP Morgan predicts Brent prices will average $88 per barrel by 2022, an increase of $70 from last year.

Three sources familiar with the matter reported that Saudi Arabia, the world’s largest oil exporter, has cut its official selling price for all grades of crude oil it sells to Asia by at least $1 per barrel in February.

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