Oil prices prep for third weekly advance as supply lines fray

Oil was poised for a third weekly gain as demand remained resilient while supplies are frayed across the Opec+ coalition and beyond.

Futures increased again on Friday to trade near $80 a barrel in New York, bringing this week’s increase to almost 7 per cent. Kazakhstan’s biggest oilproducer has altered output at the giant Tengiz field following protests in the country, while Libyan production has also been crimped.

The oil market has firmed into 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.

Production in Libya has declined amid militia unrest, while Russia also failed to boost volumes last month.

Nigeria, beset by disruptions at loading facilities, pumped just 1.35 million barrels a day of crude last month.