09.01.202419:06:00UTC+00Oil Futures Settle Notably Higher On Geopolitical Tensions

Oil prices climbed higher on Tuesday, rebounding from previous session's losses, as rising geopolitical risks raised concerns about possible supply and trade disruptions.

West Texas Intermediate Crude oil futures for February settled higher by $1.47 at $72.24 a barrel.

Brent crude futures ended higher by $1.47 or 1.9% at $77.59 a barrel.

Oil prices fell on Monday, dropping about 4%, after Saudi Arabia cut its selling prices to the lowest level in two years. Reports showing a jump in OPEC supply hurt as well.

Geopolitical tensions, and the closure of Libya's largest oilfield contributed to the jump in oil prices today.

The closure of the Sharara oilfield in Libya, which is one of the biggest in the country, has resulted in a shortfall of 300,000 barrels per day.

Due to security threats from Houthi militants amid the tensions in the Middle East, several major shipping companies are staying away from the Red Sea route.

Traders await weekly inventory data from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA). The API data is due later today, while EIA's report is due Wednesday morning.