Oil prices continue to be choppy, with WTI crude bouncing $2 higher yesterday, after diving by the same amount on Friday. The pressure in crude Oil remains on the upside though, with lows getting higher since the middle of December, which indicates a bullish trend.

Market fears regarding Oil supply routes persist, primarily driven by Middle Eastern geopolitical tensions and production constraints imposed by the Organization of the Petroleum Exporting Countries (OPEC), which is aiding in keeping Oil bullish overall. According to a recent Bloomberg survey, many energy market analysts anticipate that OPEC will continue to uphold current production caps through the second quarter, which aims to limit crude Oil supply sufficiently to sustain higher prices. Nevertheless, the surge in pumping from non-OPEC countries, notably the United States, poses a significant challenge to OPEC’s efforts to manage global supply levels and support prices.

WTI Crude Oil H4 Chart – The Lows Keep Getting Higher

Libya Oil and Gas Field Reopens

Besides that, the Libyan gas exports to Europe have resumed, and the extraction at one of Libya’s Oil facilities has restarted as well. These operations were halted for several days due to protests by the Petroleum Facilities Guard (PFG) forces, who were demanding payment of overdue salaries.

Libya’s officials have taken action to address the concerns of the PFG protesters by accepting to hike wages. The PFG plays a crucial role in ensuring the security of Libya’s oil and gas facilities, and their protests disrupted production and transportation of energy resources.

By approving the salary increase, the Libyan government aims to mitigate further disruptions to the country’s oil and gas operations and maintain stability in the energy sector. Resuming production and ensuring the uninterrupted flow of gas to Italy is essential for both Libya’s economy and its role as a supplier of energy resources to international markets, so this was an extra factor to keep Oil bullish yesterday.

US Crude Oil Live Chart