Oil output from Libya, Kazakhstan increases on receding geopolitical fears, pipeline restoration

Anil Panchal FXStreet

Having witnessed over a week-long disruption to the oil output, the latest updates from Libya and Kazakhstan both were positive.

Reuters quotes Chevron to mention, “Kazakhstan's largest oil venture Tengizchevroil (TCO) is gradually increasing production to reach normal rates at the Tengiz field after protests limited output there in recent days, operator Chevron said on Sunday.”

“Production at Tengiz, Kazakhstan's largest oilfield, was curtailed in the past few days as some contractors disrupted train lines in support of protests taking place across the central Asian country,” added the news.

On the other hand, Libya’s National Oil Corporation (NOC) mentioned, “Maintenance work for the main crude transmission line at Al-Waha Oil Company has been completed.”

NOC also cited the return of the one million barrels per day (BPD) of daily output while saying, “Contributed to reducing the losses resulting from the halt in production, which was estimated to reach about one million barrels, and the production of the Waha Company was raised by 200 thousand barrels per day.”

Market reaction

Due to the news, oil prices extend Friday’s pullback from the highest levels since November 17 to $78.18, down 0.65% intraday, during early Monday morning in Asia.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

GBP/USD bounces off over one-week low; upside potential seems limited

The GBP/USD pair edges higher at the start of a new week, reversing a part of Friday's heavy losses to over a one-week trough. Spot prices, however, lack bullish conviction and trade below mid-1.3500s during the Asian session, warranting caution before confirming that the recent pullback from the highest level since February has run its course.

EUR/USD edges higher to near 1.1600 ahead of German CPI inflation release

The EUR/USD pair gathers strength to around 1.1590 during the early Asian trading hours. The US Dollar edges lower against the Euro despite hawkish remarks from Federal Reserve Chair Kevin Warsh. Traders will take more cues from the preliminary reading of Consumer Price Index inflation data from Germany, which is due later on Monday.

Gold pares intraday losses to sub-$4,400 levels; not out of the woods yet

Gold recovers slightly from sub-$4,400 levels touched during the Asian session, though the upside potential seems limited. A softer US Dollar offers some support to the precious metal and helps trim a part of its intraday losses. Meanwhile, Federal Reserve Chair Kevin Warsh's comments on curbing inflationary pressures on Friday lifted bets for an interest rate hike, which might keep a lid on any meaningful recovery for the non-yielding bullion.

Solana: Strong institutional confidence keeps SOL afloat above $100

Solana price is trading around $100 testing the psychological support level after a 3% decline the previous day. SOL-focused Exchange Traded Funds recorded over $150 million in inflows last week, reflecting strong institutional demand. Solana risks capitulation as price tests the $100 threshold amid easing bullish momentum.

Iran’s IRGC claims it shot down US drone, attacked UAE air base

Iran’s Islamic Revolutionary Guard Corps (IRGC) shot down a US MQ-9 drone over the Strait of Hormuz using air defense missiles, causing it to crash into Gulf waters, Mehr news agency reported on Monday.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.