Oil extends rally on Kazakhstan unrest and Libyan outages | Reuters
Oil prices rose more than 1% on Thursday, extending a rally from the previous session, on escalating unrest in OPEC+ oil producer Kazakhstan and supply outages in Libya.
Global benchmark Brent crude futures rose $1.09, or 1.3%, to $81.80 a barrel by 1:06 p.m. EST (1806 GMT), their highest since late November. U.S. West Texas Intermediate (WTI) crude gained $1.40, or 1.8%, to $79.25, its highest since mid-November. The contract touched a session high of $80.24.
"OPEC production, while it did increase, disappointed the market - it is not going to be enough to keep up with demand," said Phil Flynn, an analyst at Price Futures Group in Chicago.
Brent's six-month backwardation stood at about $4 a barrel, its widest since late November. Backwardation is a market structure where current prices trade at a premium to future prices and is usually a sign of a bullish market.
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