Oil leaps and looks at the chaos of Kazakhstan

Oil prices on the rise: the rally from the previous session is continuing, mainly due to the escalation of the unrest in Kazakhstan and the supply interruptions in Libya.

The raw ended 2021 on a solid footing as the introduction of vaccines helped economies reopen, increasing energy demand and enablingOPEC+ to maintain its gradual monthly increases in production.

Now a number of supply-side factors are building up that support earnings. Furthermore, in the background, the Omicron alert continues, with China’s zero-Covid strategy threatening the demand for black gold.

Oil in the running for these reasons

At about 15.07, the Brent quotation traded at 82.63 dollars a barrel with a rise of 2.26% and i futures WTI they are up by 2.88% to 80.09 dollars a barrel.

The Petroleum, therefore, it is moving forward in the wake of growing fears that the OPEC + cartel will fail to supply enough fuel required by the growing demand.

Frost in Canada and the northern United States is disrupting oil flows, causing prices to soar just as US inventories decline.

Not only that, we look with apprehension at the evolution of tensions in Kazakhstan, explode for the expensive gas. There Russia sent paratroopers into the nation to help quell the uprising across the country. It should be emphasized that the Kazakh state produces 1.6 million barrels of oil per day and could get into trouble if the situation escalates into violence.

In addition, the production of Libyan oil it fell by more than 500,000 barrels a day due to pipeline maintenance and the closure of oil fields. In OPEC member Libya, mining decreased by about 40% also due to militia unrest, while Russia failed to ramp up production last month.

Pressed by demand seen to be picking up and supply uncertainties, oil is gaining.

Crude Oil Forecasts: The focus is on supply

JP Morgan commented on recent developments with this note reported by Reuters:

“Our reference case now assumes the alliance [OPEC] will completely eliminate the remaining 2.96 million barrels per day of oil production cuts by September 2022 “

With signs of resilient demand for the Omicron variant, low inventories and increasing market vulnerability to supply disruptions, there will be a need for more barrels from OPEC + according to the bank.

JP Morgan translated che i Brent prices will reach an average of 88 dollars a barrel in 2022, compared to $ 70 last year.

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