Oil prices rose sharply on Thursday, extending a previous session rally, due to escalating unrest in OPEC+ oil producer Kazakhstan and supply disruptions in Libya.
Brent crude futures rose $1.33, or 1.7%, to $82.13 per barrel by 1324 GMT. West Texas Intermediate (WTI) crude futures in the United States rose $1.55, or 2%, to $79.40.
Both contracts were at their highest levels since late November.
Brent's six-month backwardation was around $4 per barrel, the highest since late November. Backwardation is a market structure in which current prices trade at a premium to futures prices, and it is typically indicative of a bullish market.
On Thursday, Russia dispatched paratroopers to Kazakhstan to assist in quelling a countrywide uprising sparked by deadly violence in the tightly controlled former Soviet state.
"The political situation in Kazakhstan is becoming increasingly tense," Commerzbank said. "And this is a country that is currently producing 1.6 million barrels of oil per day."
So far, there has been no indication that oil production has been harmed.
Libyan oil output has fallen to 729,000 barrels per day (BPD) from a high of more than 1.3 million BPD last year due to maintenance and oilfield shutdowns, according to the National Oil Corp.
OPEC+, a group comprised of OPEC members, Russia, and other producers, agreed on Tuesday to add another 400,000 BPD of supply in February, as it has done every month since August.
The increase in OPEC output in December fell short of the increase planned under the OPEC+ agreement.
"Our reference case now assumes the alliance will fully phase out the remaining 2.96 million BPD of oil production cuts by September 2022," JP Morgan analysts said in a note.
The bank forecast Brent prices to average at $88 a barrel in 2022, up from $70 last year.