Crude oil prices surged over 2 percent on Tuesday, bouncing off Monday’s low, as the Middle East supply fears outweigh demand concerns. As of 1230 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, gained $1.73 (+2.27 percent) to reach $77.85 a barrel. Similarly, the West Texas Intermediate (WTI), the main oil benchmark for North America, went up by $1.67 (+2.36 percent) to $72.44 a barrel. Brent ended last week higher by 2.23 percent, while WTI closed the week up by 3.01 percent. Both benchmarks shed more than 10 percent in 2023 on a year-on-year basis. On the other hand, the price of Russian Sokol decreased by $2.06 (-2.85 percent) to $70.11. Arab Light prices witnessed a decrease of $4.11 (-5.06 percent) to reach $77.06 a barrel. The price for Opec Basket increased to $78.94 a barrel with an uptick of $0.14 (+0.18 percent). The OPEC Reference Basket of Crudes (ORB) is made up of Saharan Blend, Girassol, Djeno, Zafiro, Rabi Light, Iran Heavy, Basra Light, Kuwait Export, Es Sider, Bonny Light, Arab Light, Murban and Merey. Geopolitical tensions in the Middle East and an ongoing supply outage in Libya offered support to prices on Tuesday. On the supply side, there are some bullish factors from the closure of Libya’s largest oilfield, which has affected around 0.3 million barrels per day of oil production. Some major shipping firms are still avoiding the Red Sea. Germany’s Hapag-Lloyd (HLAG.DE) will continue to divert vessels around the Cape of Good Hope in the wake of maritime attacks by Yemeni Houthi militants, it said on Tuesday. Regarding the Gaza war, the Israeli military has said its fight against Hamas will continue through 2024, worrying markets that the conflict could grow into a regional crisis that could disrupt Middle Eastern oil supplies.