Crude Rises to New High on Libya, Middle East Tensions

Crude prices are facing a choppy session with front month Brent trading between $74.79/bbl and $77.39/bbl amid contradicting headlines regarding production curtailments of Libya’s 300kbpd Sharara oil field with support from Middle East escalations this week within the Red Sea ranging from US attacks on Houthi ships to an Iranian warship entering the area.

• Brent MAR 24 up 1.8% at 77.28$/bbl
• WTI FEB 24 up 1.9% at 71.7$/bbl
• Bloomberg reported on 12:34GMT that the Sharara oil field starts a full shutdown after protests citing people of knowledge with the matter. Earlier in the day, Bloomberg reported that that production had been reduced.
• Reuters reported around 13:44GMT that protests are forcing a partial reduction in the oil production at Libya's Sharara oilfield two engineers told Reuters on Wednesday.
• Argusmedia also published that the Sharara oil field has shut down, citing sources close to the matter. "The whole thing is fully offline," the source said.
• Libya typical produces around 1.2mbpd, according to Argusmedia. A loading programme suggests that the country is scheduled to ship around 142kbpd of Esharara crude from the Zawia terminal – connected to the Sharara field - this month on seven cargoes.
• Libyan observed crude and condensate exports rose to 1.09mn bpd in December, up from 1mn bpd in November according to Bloomberg tanker tracking.