Daily Sabah logo

Politics
Diplomacy Legislation War On Terror EU Affairs Elections News Analysis
TÜRKİYE
Istanbul Education Investigations Minorities Expat Corner Diaspora
World
Mid-East Europe Americas Asia Pacific Africa Syrian Crisis Islamophobia
Business
Automotive Economy Energy Finance Tourism Tech Defense Transportation News Analysis
Lifestyle
Health Environment Travel Food Fashion Science Religion History Feature Expat Corner
Arts
Cinema Music Events Portrait Reviews Performing Arts
Sports
Football Basketball Motorsports Tennis
Opinion
Columns Op-Ed Reader's Corner Editorial
PHOTO GALLERY
JOBS ABOUT US RSS PRIVACY CONTACT US
© Turkuvaz Haberleşme ve Yayıncılık 2025

Daily Sabah - Latest & Breaking News from Turkey | Istanbul

  • Politics
    • Diplomacy
    • Legislation
    • War On Terror
    • EU Affairs
    • Elections
    • News Analysis
  • TÜRKİYE
    • Istanbul
    • Education
    • Investigations
    • Minorities
    • Expat Corner
    • Diaspora
  • World
    • Mid-East
    • Europe
    • Americas
    • Asia Pacific
    • Africa
    • Syrian Crisis
    • Islamophobia
  • Business
    • Automotive
    • Economy
    • Energy
    • Finance
    • Tourism
    • Tech
    • Defense
    • Transportation
    • News Analysis
  • Lifestyle
    • Health
    • Environment
    • Travel
    • Food
    • Fashion
    • Science
    • Religion
    • History
    • Feature
    • Expat Corner
  • Arts
    • Cinema
    • Music
    • Events
    • Portrait
    • Reviews
    • Performing Arts
  • Sports
    • Football
    • Basketball
    • Motorsports
    • Tennis
  • Gallery
  • Opinion
    • Columns
    • Op-Ed
    • Reader's Corner
    • Editorial
  • TV
  • Business
  • Automotive
  • Economy
  • Energy
  • Finance
  • Tourism
  • Tech
  • Defense
  • Transportation
  • News Analysis

Kazakhstan unrest triggers oil price hike; uranium less affected

by French Press Agency - AFP

LONDON Jan 09, 2022 - 12:16 pm GMT+3
Kazakh military vehicles (R) parked at an area in downtown Nur-Sultan, the capital city of Kazakhstan, Jan. 8, 2022. (EPA Photo)
Kazakh military vehicles (R) parked at an area in downtown Nur-Sultan, the capital city of Kazakhstan, Jan. 8, 2022. (EPA Photo)
by French Press Agency - AFP Jan 09, 2022 12:16 pm

Unrest in OPEC+ member Kazakhstan has led to an increase in oil prices as investors fear supply interruptions; however, the uranium market appears less affected despite the Central Asian country being the world's second-largest producer.

The Organization of the Petroleum Exporting Countries plus (OPEC+) are the 10 non-OPEC countries that export crude oil, including Kazakhstan and Azerbaijan.

"Riots obviously can stop production and exports," said Bjarne Schieldrop, an analyst at Swedish bank SEB.

Over the week, crude prices gained about 5% and on Friday Brent exceeded $83 per barrel, "putting it at its highest level since the price slide triggered by the first appearance of the omicron variant in late November," said Carsten Fritsch, commodities analyst at Commerzbank.

Protests spread across the country of 19 million this week in outrage over New Year's increase in prices for liquid petroleum gas (LPG), which many use to fuel cars.

Thousands took to the streets in Almaty and in the western province of Mangystau in protests that broadened to include anti-government slogans.

Violence erupted when police fired tear gas and stun grenades at thousands protesting in Almaty on Tuesday.

The next day protesters stormed government buildings, setting them ablaze and a nationwide state of emergency was declared.

Kazakh president Kassym-Jomart Tokayev on Friday rejected calls for talks with protesters after days of unprecedented unrest, authorizing his forces to shoot-to-kill without warning.

Meanwhile, the presidential office later said on Sunday that many "strategic facilities" in the country are under the guard of a Russia-led military alliance invited to restore order.

Production 'continuing'

The country is the largest oil producer in Central Asia with a 12th of the world's proven reserves, according to the United States Energy Information Administration (EIA). Kazakhstan produced around 1.8 million barrels a day in 2020.

The country is also the second-largest oil producer in the OPEC+ group of top oil producers, behind Russia.

Hydrocarbons made up 21% of its gross domestic product (GDP) in 2020, according to the World Bank.

Production by Tengizchevroil, the largest oil venture in Kazakhstan, "has been temporarily adjusted as a result of protests at the Tengiz field," said Stephen Brennock of PVM brokerage.

But several analysts said there was no indication that oil production had been seriously affected.

On Friday, production at the country's top three fields was "said to be continuing," said Brennock.

"Unrest in Kazakhstan is bullish in the short-term," said Neil Wilson, an analyst at Markets.com.

At the close of trading on Friday, crude oil prices had fallen slightly, with Brent falling 0.28% to $81.76 and West Texas Intermediate down 0.54% at $79.03.

Uranium mines 'largely unaffected'

Kazakhstan, the world's ninth-largest country, is rich in manganese, iron, chrome and coal.

It also has the world's second most significant uranium reserves behind Australia, according to the Cyclope annual report on commodities, accounting for 40% of the world's output, according to CRU consulting group.

Toktar Turbay, an analyst at CRU, said the current crisis is "just likely to create minor discomfort rather than anything else," since the largest customer China has accumulated enough uranium to cover its needs in the short term.

Kazakhstan's uranium mines are located in remote areas of its southern Turkestan region, which is "largely unaffected by ongoing protests and clashes within the country," the analyst said.

"More than half of Kazakh uranium exports go to China."

"There might be some logistical hurdles with delivering products to the borders since major routes pass through the Almaty region," Turbay added, referring to the region where the most violent clashes have taken place.

  • shortlink copied
  • KEYWORDS
    oil prices kazakhstan kazakhstan protests oil production uranium
    The Daily Sabah Newsletter
    Keep up to date with what’s happening in Turkey, it’s region and the world.
    You can unsubscribe at any time. By signing up you are agreeing to our Terms of Use and Privacy Policy. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
    No Image
    Muslims around the globe observe holy month of Ramadan
    PHOTOGALLERY
    • POLITICS
    • Diplomacy
    • Legislation
    • War On Terror
    • EU Affairs
    • News Analysis
    • TÜRKİYE
    • Istanbul
    • Education
    • Investigations
    • Minorities
    • Diaspora
    • World
    • Mid-East
    • Europe
    • Americas
    • Asia Pacific
    • Africa
    • Syrian Crisis
    • İslamophobia
    • Business
    • Automotive
    • Economy
    • Energy
    • Finance
    • Tourism
    • Tech
    • Defense
    • Transportation
    • News Analysis
    • Lifestyle
    • Health
    • Environment
    • Travel
    • Food
    • Fashion
    • Science
    • Religion
    • History
    • Feature
    • Expat Corner
    • Arts
    • Cinema
    • Music
    • Events
    • Portrait
    • Performing Arts
    • Reviews
    • Sports
    • Football
    • Basketball
    • Motorsports
    • Tennis
    • Opinion
    • Columns
    • Op-Ed
    • Reader's Corner
    • Editorial
    • Photo gallery
    • DS TV
    • Jobs
    • privacy
    • about us
    • contact us
    • RSS
    © Turkuvaz Haberleşme ve Yayıncılık 2021