Oil rises amid supply concerns

Oil drilling rigs

Oil prices rose in early session today Jan. 4, as supply concerns persisted amid escalating tensions in the Middle East and as Libya’s Sharara oil field remained closed.

International benchmark Brent crude rose 0.70% to $78.80 a barrel, at 09:00 am Makkah time. West Texas Intermediate (WTI) crude gained 0.83% to $73.30 a barrel.

"A confluence of headlines around further tensions in the Red Sea and a full shutdown of Libya's Sharara oilfield from local protests have renewed concerns about global oil supply disruptions," said Yeap Jun Rong, Market Strategist at IG., according to a Reuters report.

The Energy Information Administration (EIA) is scheduled to release the official data on oil inventories in the United States.

The American Petroleum Institute’s estimates showed a decrease in inventories by about 7.42 million barrels during the week ended Dec. 29. Gasoline inventories rose by 6.91 million barrels during the same period.