By Gina Lee
Investing.com – Oil was up on Friday morning in Asia. However, ongoing protests in Kazakhstan prompted fears of a disrupted crude supply from the Organization of the Petroleum Exporting Countries and allies (OPEC+) producer alongside decreased production in Libya.
Brent oil futures rose 0.74% to $82.60 by 10:12 PM ET (3:12 AM GMT) and WTI futures rose 0.79% to $80.09. Both Brent and WTI futures were above the $80 mark, and on track to post a 6% gain in the first week of 2022, with prices at their highest since late November 2021.
"The upward jump in oil prices mostly reflects the market jitters as unrest escalates in Kazakhstan and the political situation in Libya continues to deteriorate and sideline oil output," Rystad Energy analyst Louise Dickson told Reuters.
The government has declared a state of emergency in Kazakhstan, after days of unrest that began in the country’s oil-rich western regions after price caps on butane and propane were removed on New Year's Day. Russia has also sent paratroopers on Thursday to help put down the protests.
For now, supply concerns are overtaking worries about the impact of the omicron COVID-19 variant on fuel demand.
Supply additions from OPEC+ announced earlier in the week are not keeping up with demand growth. The cartel’s output in December 2021 rose by 70,000 barrels per day from November, falling short of the 253,000-bpd increase allowed under its 2021 supply deal.
Meanwhile, production in Libya fell to 729,000 barrels per day, down from a high of 1.3 million bpd last year, thanks in part to pipeline maintenance work.