03.01.202419:23:00UTC+00Crude Oil Snaps Four-Session Losing Streak

The price of crude oil moved sharply higher during trading on Wednesday, regaining ground following the significant pullback seen over the past several sessions.

After closing lower for four consecutive sessions, crude for February delivery surged $2.32 or 3.3 percent to $72.70 a barrel.

The rebound by crude oil reflected concerns about further attacks by Houthi militants against ships in the Red Sea as well as reports protests in Libya have forced the shutdown the Sharara oil field, which produces up to 300,000 barrels per day.

"Both could threaten output if intensified but may not pose a substantial upside risk to prices otherwise," said Craig Erlam, OANDA Senior Market Analyst, UK & EMEA.

Crude oil also benefitted from the release of a statement from OPEC and their allies reiterating their full commitment to their continued and unwavering efforts to maintain oil market stability going forward.