WTI crude futures steadied near $79 per barrel on Monday after a strong rally last week, as supplies returned in Libya and Kazakhstan. Libyan production rose to 900,000 barrels a day after maintenance in a major pipeline was completed.
while some output was restored in Kazakhstan following unrest that interrupted supplies last week. Elsewhere, China began a city-wide testing campaign in the port city of Tianjin after 20 people tested positive, raising demand concerns in the world’s biggest oil importer as the country maintains its zero-tolerance approach to Covid.
Meanwhile, oil prices have pushed higher at the start of 2022 amid optimism about global demand coupled with supply constraints. While OPEC+ agreed to boost output further, analysts suggest the group may not be able to deliver the planned amount in full. Declining US crude inventories also buoyed oil prices, with EIA reporting six straight weekly draws