Oil prices skyrocketed on Thursday and Friday after reports indicated that the unrest in Kazakhstan disrupted production at Tengiz, the largest oil field in the country. Brent traded at over $ 82 a barrel, while WTI cost over $ 80.
A Reuters report said output was cut by rail disruptions caused by some contractors declaring their support for the protesters.
Kazakhstan produces about 1.6 million barrels of crude oil per day, of which 700,000 comes from Tengiz. As part of the OPEC agreement on production cuts, the country began to produce less oil. In fact, earlier, other countries criticized Kazakhstan for its non-compliance with the agreed quota. This February, its quota is 1.589 million barrels per day.
Unrest in the country erupted when fuel prices rose significantly. That happened when the government lifted price controls on liquefied petroleum gas (LPG), which many Kazakhstanis use to fuel their LPG-converted vehicles because it was cheaper than gasoline. The rise in fuel prices also led to an increase in consumer prices. The protests continued even after the government turned violent to appease the protesters.
President Kassym-Jomart Tokayev also said that the price ceiling for LPG would be restored and prices would be reduced. However, protests continued, which resulted in deaths of dozens of protesters and arrest of around 2,000 people. 18 security officials died as well.