Tight Oil Supplies Push Oil Prices Higher

Oil prices rose slightly in Monday’s trade, thanks to the expectation that oil supply will remain tight globally. Despite a recent increase in oil production from Libya, the anticipation is there will not be enough oil for economies and consumers as eyes turn to a hopeful life after COVID-19.

Despite light trading action because of the Martin Luther King, Jr. holiday, West Texas Crude was trading in the mid-$80 per barrel range Monday, an increase of just over 0.5%. Many investors continue to expect oil demand to increase, as signs point to the Omicron variants not being as disruptive long-term, as many had feared.

OPEC is gradually relaxing output cuts implemented when demand collapsed in 2020.

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