Oil jumps 3% amid renewed supply concerns

Oil drilling rigs

Oil prices closed positive today, Jan. 3, after protestors halted production at Libya’s Sharara oil field and as tensions in the Middle East continued, giving rise to supply concerns.

Brent crude futures for March delivery rose 3.1%, or $2.36, to $78.25 per barrel, after touching $78.41.

WTI crude for February delivery rose by 3.3%, or $2.32, to $72.70 per barrel, after touching $72.90.

The Organization of the Petroleum Exporting Countries (OPEC) pumped an average of 28.05 million barrels per day in December, with previously agreed supply restrictions continuing, before the OPEC+ alliance began additional cuts of about 900,000 barrels per day to achieve price stability, Bloomberg survey showed.

Separately, the US Department of Energy announced a request to purchase up to three million barrels of oil for delivery in April 2024 to enhance the strategic reserve, while continuing its plan to refill emergency reserves and protect energy security.

The American Petroleum Institute's report on oil inventories is expected later today, and the US Energy Information Administration is scheduled to issue official data on inventories on Jan. 4, amid expectations that crude inventories will fall by 3.2 million barrels.