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Futures in New York traded near $80 a barrel after rising almost 6% over the past four sessions. Kazakhstan’s biggest oil producer has altered output at the giant Tengiz field following protests in the country, while Libyan production has also been crimped. Oil’s market structure has firmed in a bullish backwardation structure, signaling growing supply tightness.
The OPEC+ alliance this week stuck with a scheduled output boost of 400,000 barrels a day for February, but the group is unlikely to meet that threshold as some members struggle to achieve their targets. Output in Libya has declined amid militia unrest, while Russia also failed to boost output last month.
See also: World’s Most Dramatic Fuel Protests to Stay Local: Oil Strategy
The operator of Kazakhstan’s Tengiz field, known as TCO, declined to provide further details on the size of the output adjustment, but it said that production operations were continuing. TCO is a joint venture led by Chevron Corp. (NYSE:CVX) that pumps about a third of Kazakhstan’s oil.
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