Jan 4, 2024: Oil prices continued their ascent on Thursday, building on significant gains from the previous session, driven by ongoing worries about disruptions in Middle Eastern supply. Heightened tensions surrounding the Israel-Gaza conflict and disturbances at a field in Libya contributed to the market’s unease.
As of 0440 GMT, Brent crude climbed by 38 cents, marking a 0.5% increase to reach $78.63 a barrel, while U.S. West Texas Intermediate crude futures rose by 52 cents, a 0.7% uptick, reaching $73.22.
Both benchmarks had surged around 3% on Wednesday, registering their first positive settlement in five days, with WTI experiencing its most substantial daily percentage increase since mid-November.
Yeap Jun Rong, a market strategist at IG, highlighted the convergence of news concerning heightened tensions in the Red Sea and the complete shutdown of Libya’s Sharara oilfield due to local protests. The Sharara oilfield, capable of producing up to 300,000 barrels per day, faced a forced halt in production amidst ongoing local and broader political demonstrations.
