The OPEC+ alliance and North America faced supply constraints, with U.S. oil up more than 2 percent to a nearly seven-week high

Oil rose 1.
63% to close at $82.
12 / barrel in late trading on Thursday (January 6), earlier hitting its highest level since the end of
November.
Oil prices closed higher
for four straight days as capacity constraints are holding back as global demand recovers from the pandemic, a survey showed.

Libyan oil production fell to 729,000 b/d last year, hit a high of more than 1.
3 million b/d last year due to maintenance and field closures
, according to the Libyan National Oil Company (NOC).
Due to the unrest in Kazakhstan, production from the Tengiz field, a large OPEC+ member, has undergone temporary adjustments
.
So far, however, there is no indication that Kazakhstan's oil production has been affected
.
The country produces about 1.
6 million b/d
of oil.

The six-month inversion spread for Brent crude futures was about $4 per barrel, the widest
since late November.
The rise in spot premiums suggests that supply constraints across the OPEC+ alliance are delaying the expected global market
gluttony.
OPEC member Libya saw a military unrest cut about 30 percent in production, while Russia failed to raise output
last month.

Rebecca Babin, senior energy trader at CIBC Private Wealth Management, said demand remained strong in the face of many factors such as the omicron pandemic, supply disruptions, concerns about OPEC+ spare capacity and, more importantly, market sentiment, which supported oil prices
.
It feels like we are preparing for the price upside
.

Phil Flynn, analyst at Price Futures Group, said: "OPEC production, while it did increase, still disappointed the market because it was not enough to keep up with demand
.
”

As temperatures from North Dakota to Northern Alberta were below zero Fahrenheit (-18 degrees Celsius), TC Energy Group's Keystone pipeline was shut down Tuesday night, with cold weather slowing oil flows, making it difficult to restore service
.
In North Dakota's Bakken Shale Basin, production also began to suffer from cold weather, causing local crude prices to rise to their highest level
since November.

The Keystone pipeline transports 590,000 barrels of Canadian oil per day from Alberta to the Midwest
.
TC Energy said it was working to restore service, but extreme cold weather affected oil flows
at the Hardisty terminal.
Meanwhile, Enbridge Inc.
said it is seeking crude supplies for its main pipeline system across Canada and the United States to keep its pipeline running
at a predetermined pace.

Although Western Canada and North Dakota are generally cold at this time of year, temperatures are cooler this year than usual
.
Since Dec.
27, Western Canada Select has narrowed its discount to the U.
S.
benchmark crude by nearly $3
.

(U.
S.
oil 4-hour chart)