Paring initial gains, crude oil futures ended lower on Friday as investors continued to monitor unrest in Kazakhstan that threatens to add to supply outages that have helped boost crude prices. Kazakhstan produces about 1.6 million barrels of oil per day. Russia has reportedly sent its paratroopers into Kazakhstan to help control a countrywide uprising that erupted after widespread violence. Elsewhere, the political situation in Libya continues to deteriorate and sideline oil output. Production in Libya has dropped to 729,000 barrels per day from a high of 1.3 million bpd last year, partly due to pipeline maintenance work. Investors also continued to bet on hopes the Omicron variant of the coronavirus will not significantly impact global oil demand.
Benchmark crude oil futures for February delivery fell 56 cents or 0.7 percent to settle at $78.90 a barrel on the New York Mercantile Exchange. Brent crude for March delivery lost 24 cents or 0.3 percent to settle at $81.75 a barrel on London's Intercontinental Exchange.