January 21, 2022

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The turmoil in Kazakhstan is a new impetus for rising oil prices

The turmoil in Kazakhstan is a new impetus for rising oil prices

The turmoil in Kazakhstan is a new impetus for rising oil prices

Deals for the highest weekly closure since the “Omigron” mutant eruption

Sunday – 6 Jumata al-Akira 1443 Hijri – 09 January 2022 AD Release number. [
15748]

Motorists line up at a gas station in the Kazakh city of Almaty (AFP)

Dubai: “Middle East”

The turmoil in Kazakhstan, a member of the Organization of the Petroleum Exporting Countries (OPEC), is a new stimulus that is contributing to the rising cost of black gold in global markets as investors fear potential supply disruptions.
“The riots clearly represent a risk to global market distribution,” said Bjarne Schieldrop, an analyst at financial institution Seib.
During the week, crude prices were up about 5 percent until Friday, when Brent crude crossed the $ 83 a barrel, recording “the highest level since the rise in late November with the appearance of Omigron mutants”. Analyst Carsten Fritsch at Commerzbank. .
On Sunday, protests erupted in the provinces following the rise in gas prices, which then spread to other cities.
Kazakhstan is the largest oil producer in Central Asia and ranks 12th in the world in proven crude reserves, according to the US Energy Information Administration. Kazakhstan will produce about 1.8 million barrels a day by 2020, making it the second largest oil producer after OPEC partners within the OPEC Plus Alliance (OPEC +) structure after Russia. According to the World Bank, oil will represent 21 percent of Kazakhstan’s GDP by 2020.
Stephen Brenak of PVM Energy notes that the production of “Tengiz – Chevroil”, Kazakhstan’s largest oil company, has been “temporarily adjusted due to protests in the Tengiz sector”.
However, many analysts believe that there is no indication that Kazakhstan’s oil production has been significantly affected, while Brennock confirms that “production continued last Friday in three key sectors of the country.”
“The turmoil in Kazakhstan is driving up prices in the short term,” said analyst Neil Wilson on Markets.com. At the end of Friday’s trading session, oil prices fell slightly as the brand fell 0.28 percent to $ 81.76 a barrel at 16.23 and West Texas Intermediate crude was up 0.54 percent. Was $ 79.03. Kazakhstan is the world’s ninth largest producer of manganese, iron, chromium and coal.
Contains the second largest uranium resource in the world, according to the annual “Siclop” report on raw materials. According to data from consulting firm CR-Yom Consulting, Kazakhstan supplies uranium to French nuclear power plants and protects 40 percent of global production.
Dr. Dorbe, an analyst with the company, believes the current crisis is “likely to cause minor disruptions”, but explains that “uranium mines are located in remote areas of the Turkestan region, which is still a long way off”. Demonstrations and clashes in the country. “
The same analyst notes that “more than half of Kazakhstan’s uranium exports are to China,” explaining that “there may be logistical barriers to delivery of products across the border because major roads pass through the Almaty region.” Conflicts take place.
On Friday, oil prices were on track to reach their biggest weekly gain since mid-December as Brent crude futures rose to $ 82, while West Texas crude futures traded at $ 79.29 a barrel.
And both crude oils are set to record an increase of 5.5 percent in the first week of the year, with prices reaching their peak from the end of November because concerns about supply outweigh concerns about the potential for demand to be affected. The clumsy OMICRON from the “corona” virus is spreading fast.

Kazakhstan

International Economy

Oil

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