Oil prices generate steady picture amid rising concerns of disruption

 On Monday, commodity handlers could finally keep their calm as oil prices were closed down on a steady note despite the Covid-19 scare. 

Bigger relief came from Libya and Kazakhstan as they saw some disruptions in the regional affairs which could have further led to inflaming the oil prices. The two issues combined, the way the prices startled at a steady note were a big relief to the agents.

As per reports, the Brent crude oil fell 13 cents, or 0.2%, to $81.62 a barrel while the U.S. West Texas Intermediate (WTI) crude was down 17 cents, or 0.2%, at $78.73 a barrel. The two sides saw a rise of 50 cents when the session started earlier.

Addressing the stability, Commerzbank analyst Carsten Fritsch said, “The tailwind lent to oil prices by supply concerns should therefore abate, which suggests that prices will fall this week.”

Libya’s role is equally important here as the protest in Kazakhstan disrupted train lines essentially leading to affecting the production at the country’s top oilfield Tengiz and a picture was replicating in Libya where the production had gone down by 729,000 barrels per day from a high of 1.3 million last year.

As far as the oil companies in Kazakhstan are concerned, the oil production is slowly increasing rate production and it was also confirmed by one of the operators at the site.

As it happened during the COvid-19 outbreak two years ago, it was expected that Omicron will also lead to worldwide disruption of oil prices and hamper the production practice but too much of the relief of this sector, it has not endured any such impact till now.