Oil prices begin to stabilize

January 17, 2022

Oil prices were steady at the beginning of this week

Investors believe that the global supply will remain tight despite the rise in Libyan output. Oil buying, mainly driven by supply shortages and signs that Omicron won’t affect the fuel demand as initially expected.

To keep the prices under control, the Organization of the Petroleum Exporting Countries and its allies are gradually relaxing outputs cuts after the demand collapsed in 2020. Despite their efforts, smaller producers cannot increase the supply, while others have been wary of pumping too much oil if COVID-19 setbacks reappear. Meanwhile, Libya’s overall oil output is back on track to 1.2 million barrels per day, after falling to 900,000 BPD last week, due to the blockade of western oilfields.

Brent oil was down 0.3% at $85.82 per barrel, while crude lost less than 0.1% reaching $83.84 a barrel.

Source: investing.com

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