Brent crude futures closed higher, with supply still expected to be tight

According to foreign news on January 17, oil prices rose on Monday, investors bet that global supply will remain tight, but the production constraints of major oil-producing countries are partially offset
by an increase in Libyan production.

Brent crude futures settled up $0.
42, or 0.
5 percent, at $86.
48 a barrel
.
Earlier in the session, it hit its highest since Oct.
3, 2018,
at $86.
71.

U.
S.
crude futures rose $0.
41, or 0.
5 percent, to $84.
23 a barrel at the start of the session in Asia on Tuesday, after hitting its highest price since Nov.
10, 2021 at $84.
78 a barrel on Monday
.
Monday coincided with the Martin Luther King Jr.
Day holiday in the United States, and trading was light
.

Frenzied oil buying has pushed some grades of crude to multi-year highs, driven by supply disruptions and signs that the Omicron variant will not wreak havoc on fuel demand as feared, suggesting that the Brent rally could continue for some longer
, traders said.

Toshitaka Tazawa, an analyst at Fujitomi Securities, said: "Bullish sentiment continues, with the OPEC+ alliance of the Organization of the Petroleum Exporting Countries (OPEC) and allies not providing enough supply to meet strong global demand
.
" ”

OPEC+ is gradually rolling out the production cuts put in place when demand collapsed in 2020
.
But many smaller producers have been unable to increase supply, while others have been wary of producing too much oil in case the pandemic hits their economies
again.

Meanwhile, the country's total oil production has recovered to 1.
2 million b/d,
according to Libya's national oil company.
Libya produced about 900,000 b/d
of oil last week due to disruptions in western oil fields.