Oil is recovering on supply disruptions

The oil market is recovering weakly after falling at the end of last week from the area of $83 per barrel to $81.20. The current Brent quote is $82.20, WTI oil is trading near the level of $79.00 per barrel. 

Supply disruptions in Kazakhstan and Libya contribute to the rise in prices on Monday. And investors' concerns about these disruptions far outweigh the concern caused by the new omicron strain. 

In particular, protests in Kazakhstan disrupted railway communication and damaged production at the country's largest Tengiz field. It is worth noting that Kazakhstan exports about 1.5 million barrels per day, but now the volumes will be adjusted.

In Libya, the pipeline is being repaired, which led to a decrease in production to 729 thousand barrels per day from last year's maximum of 1.3 million barrels per day.

Analysts note that these reasons are not the only ones: if Russia invades Ukraine, it could disrupt Russian oil exports to Europe and push prices up.