The price of oil rose on tightening Libyan supply ahead of a production policy meeting of OPEC+ on Tuesday.
New York crude futures are nearing $76 a barrel in early London trade after sliding 2.3% on Friday. In less than two weeks after the militia shut down the country’s biggest field, Libyan output is expected to drop to its lowest level in nearly a year.
Oil prices surged last year following the rollout of vaccines, which helped economies reopen, driving demand for energy.
China is tackling a number of problems as the world’s second largest economy, OPEC+, plans to add 400,000 barrels a day to global crude supply
As for COVID-19, the world’s second biggest economy continues to fight its latest outbreak in Xi’an, and other countries are also battling outbreaks triggered by the omicron variant of the virus.
Due to increased holiday travel, New Year celebrations, and school reopenings following winter breaks, infection rates are likely to rise in the U.S. in the coming weeks, which could cause major disruptions.
There are global flight cancellations due to CVID-19 and Omicron virus outbreaks.
Within the next week, Libya expects to see its oil production fall by another 200,000 barrels a day. With the shuttering of Sharara, the overall production will be reduced to about 700,000 barrels a day.