Oil climbs as Libyan production slumps ahead of Bloomberg’s OPEC + supply meeting
© Reuters. Oil climbs as Libyan production slumps ahead of OPEC + supply meeting
(Bloomberg) – Oil rose as Libyan supply tightened ahead of an OPEC + meeting on Tuesday to discuss production policy for February.
New York futures rose to $ 76 a barrel in early Asian trading after falling 2.3% on Friday. Libyan production is expected to drop to its lowest level in more than a year as workers attempt to repair a damaged pipeline less than two weeks after the militia closed its largest field. The OPEC + alliance is expected to agree to an increase in production next month, according to a Bloomberg survey.
Oil recorded its biggest annual gain since 2009 last year as vaccine rollouts helped economies reopen, increasing demand for energy. As OPEC + is poised to add an additional 400,000 barrels per day to the global supply, there is still concern over demand for crude as China grapples with a Covid-19 outbreak and the variant of the omicron virus causes flight cancellations around the world.
Libya expects its oil production to drop an additional 200,000 barrels per day over the next week. With supply lost due to the plugging of its Sharara field, this will reduce overall production to around 700,000 barrels per day.
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