Oil prices fell as OPEC member Libya resumed production from its largest field, boosting global supplies and overcoming concerns about tensions in the Red Sea that appear set to continue disrupting shipping.
Global benchmark Brent crude fell to $78 a barrel, after a week of trading within a narrow range, while West Texas Intermediate (WTI) was little changed and remained above $73.
A The Libyan National Oil Corporation said that flows from the Sharara field, which previously pumped about 270,000 barrels per day, will resume after a three-week hiatus.
Elsewhere in the Middle East, traders are anticipating a long-term disruption to shipping in the Red Sea and Suez Canal, as the United States tries to prevent Iran-backed Houthi rebels in Yemen from attacking ships.
Military action to deter attacks will take some time, according to Biden administration official John Feiner, who hinted that Washington may take additional steps in the coming days.
The seesaw oil prices pattern came as the impact of tensions across the Middle East, including the war between Israel and Hamas in the Gaza Strip, was balanced by expectations that oil markets would remain adequately supplied.
Last week, the International Energy Agency highlighted increases in oil production outside the OPEC members, while demand growth is slowing.
This comes as cold weather in the United States has halted millions of barrels of supplies, which could take weeks to restore.
Oil Prices
RBOB gasoline (Nymex) $216.66 per Gallon +0.38
Brent blend $78.49 per barrel -0.07
WTI (Nymex) $73.21 per barrel -0.20
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