WTI extends gains to near $73.00 on Israel-Gaza conflict, Libya oilfield disruption

West Texas Intermediate (WTI) price trades higher near $73.00 per barrel during the Asian session on Thursday. The WTI price is gaining upward momentum due to increased tensions in the Israel-Gaza conflict. Furthermore, disruptions at an oilfield in Libya are contributing to the strengthening of Crude oil prices.

The Iran-backed Houthis recently launched two anti-ship ballistic missiles targeting a container ship in the southern Red Sea en route to Israel. This incident has escalated worries about maritime security in the Red Sea region. Moreover, a tragic incident unfolded as nearly 100 people lost their lives in explosions in Iran during an event commemorating the late commander Qassem Soleimani. Soleimani had been killed by a US drone strike in 2020.

This Wednesday saw local protests leading to a complete shutdown of production at Libya's major Sharara oilfield, capable of producing up to 300,000 barrels per day (bpd). Moreover, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) have affirmed their commitment to ongoing cooperation and dialogue within the larger coalition. A meeting of the group has been scheduled for February 1 to assess and review the implementation of the latest oil output cuts.

Crude oil prices received additional support from the Weekly Crude Oil Stock data released by the American Petroleum Institute (API) on Wednesday. The data indicated a significant decline in US Crude stocks by 7.418 million barrels for the week ending on December 29, surpassing the market consensus of a 2.967 million barrel decrease. Moreover, anticipation builds as the Energy Information Administration (EIA) is set to release the US Crude Oil Stocks Change on Thursday.