Libya Tightens Oil Supplies, Causing Oil Prices to Go Up

As Libya tightened supplies before the OPEC+ meeting, Monday, oil prices rose in early Asian trading. Meanwhile, COVID-19 continues to spread, and concerns about declining fuel demand have also limited the growth of black liquid.

As of 8:59 pm Eastern Time, Brent crude oil futures rose 0.40% to US$78.17, and WTI futures rose 0.55% to US$75.62.

Less than two weeks after, the militia closed its largest oil field. Workers are still trying to repair the damaged pipeline in Libya.

These factors may reduce production to its lowest level in more than a year. Next week, oil production should decrease by another 200,000 barrels per day. In addition to the loss of supply caused by the closure of the Shaara oil field, the country’s total production should drop to around 700,000 barrels per day.

At the same time, OPEC+ will meet on Tuesday to discuss its February 2022 production policy. Some investors predict that OPEC will stick to its plan to increase global supply by another 400,000 barrels per day.

Gold Prices: Recent Update

Gold prices fell in early Asian trading on Monday. However, due to concerns about increasing COVID-19 cases, higher U.S. Treasury yields supported safe-haven assets. As major Asia-Pacific markets, including China, Japan, and Australia, are closed for holidays, trade remains thin.

As of 11:20 pm Eastern Time, gold futures fell slightly by 0.11% to US$1,826.25, reaching a more than one-month high of US$1,831.49 during the session. The benchmark 10-year U.S. Treasury note recorded the largest increase in yield since 2013 at the end of 2021.

The U.S. stock market also closed near to historical highs in light trading on December 31, ending the second year of recovery from the COVID-19 pandemic.

In the Asia-Pacific region, due to COVID-19-related restrictions and consumers in major Asian countries reducing their purchases before the year-end holidays, India’s gold discount expanded to its highest level in five months last week.

As for other precious metals prices, silver fell slightly by 0.2%, platinum rose by 0.8%, and palladium rose by 0.6%.