Oil prices return to pre-Omicron levels as Shell takes stock of buybacks

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The oil port of Brega in Marsa Brega, Libya

AFP via Getty Images

Oil prices remained firmly above the $ 80 per barrel mark on Friday after unrest in Kazakhstan, a major crude producer, raised fears of possible supply problems.

In addition, Royal Dutch Shell, (ticker: RDSA), the Anglo-Dutch oil major, took stock. The stock is stable at £ 17.20 ($ 23.30).

The price of Brent, the international benchmark, and West Texas Intermediate jumped about 6% this week, the Kazakh situation adding to pre-existing concerns over closures in Libya, where daily production has fallen nearly 50% since ‘last year. .

OPEC and its allies decided on Tuesday to stick to their plans to increase production by 400,000 barrels per day in February, but market players now believe that this decision will not be enough to meet demand. In the coming months.

Oil prices are now above their pre-Omicron level for the first time yesterday, “which shows how markets have dismissed the risks of the new variant having a significant impact on growth,” Jim Reid wrote , Deutsche Bank analyst.

Brent Oil rose nearly 0.9% to $ 82.73 a barrel on Friday, with West Texas Intermediate in proportions similar to $ 80.24 per barrel.

Royal Dutch Shell

said friday in a perspective ahead of its fourth quarter update, it would continue its share buyback program despite liquefied natural gas outages and declining demand for its products due to the impact of the Omicron variant.

Write to Pierre Briançon at pierre.briancon@dowjones.com

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Felix J. Dixon