Oil prices rose sharply on Thursday, extending a rally from the previous session, on escalating unrest in OPEC+ oil producer Kazakhstan and supply outages in Libya, Reuters reported.
The global benchmark Brent crude futures rose $1.09, or 1.4%, to $81.89 a barrel, by 1054 GMT. U.S. West Texas Intermediate (WTI) crude futures gained $1.17, or 1.5%, to $79.02 a barrel.
Both contracts were trading at their highest since late November, according to Reuters.
Brent’s 6-month market structure stood at about $4 a barrel in backwardation – where current prices trade at a premium to future prices – its widest since late November and usually a sign of a bullish market.
Russia sent paratroopers into Kazakhstan on Thursday to help quell a countrywide uprising after deadly violence spread across the tightly controlled former Soviet state.
“The political situation in Kazakhstan is becoming increasingly tense,” Commerzbank said.
“And this is a country that is currently producing 1.6 million barrels of oil per day.”
There were no indications that oil production has been affected so far.
Libyan oil output is down by over 500,000 barrels per day due to pipeline maintenance and oilfield shutdowns.