03 Jan , 2022 By : Kanchan Joshi
Oil rose as Libyan supply tightened ahead of an OPEC meeting on Tuesday to discuss production policy for February.
Futures in New York advanced toward $76 a barrel in early Asian trading after sliding 2.3% on Friday. Libyan output is expected to decline to the lowest level in more than a year as workers try and fix a damaged pipeline less than two weeks after militia shut down its biggest field. The OPEC alliance is set to agree to an increase in production next month, a Bloomberg survey shows.
Oil posted its biggest annual gain since 2009 last year as the rollout of vaccines helped economies to reopen, boosting energy demand. While OPEC is poised to add another 400,000 barrels a day to global supply, there are still concerns about crude demand as China tackles a Covid-19 flare-up and the omicron virus variant leads to flight cancellations worldwide.
Libya expects its oil production to drop by another 200,000 barrels a day over the next week. Together with the supply lost from the shutter of its Sharara field, that will trim overall output to about 700,000 barrels a day.
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