NEW YORK, Dec. 29 (UPI) -- Global crude oil prices increased modestly on the last Monday of the year as national and economic stability threatens two oil producers from OPEC.
Brent crude prices rose 1.4 percent from the previous session to recover above the $60 threshold to trade at $60.28 in early Monday trading for the February contract. Crude oil prices have traded in a bear market since June, though conflict in Libya, a member of the Organization of Petroleum Exporting Countries, put positive pressure on the market.
The market reaction was only slight, however, as output from Libya is about 70 percent of its production from before civil war in 2011. Production from shale deposits in the United States may be providing a buffer against the Libya shortage.
The Libyan war in 2011 prompted the International Energy Agency to call on member states to release oil from strategic reserves to offset loss of around 1 million barrels per day from the North African country. At the time, the United States was producing around 5.6 million bpd, but now produces just over 9 million bpd.
Global crude oil prices have been in a steady decline since late November when OPEC said it would keep production levels static. OPEC kingpin Saudi Arabia said it would let the market determine the floor price for crude oil, though frustration surfaced during the weekend from fellow member Algeria.
With oil revenues expected to come in $2 billion below last year's levels, Algerian Energy Minister Youcef Yousfi said OPEC should defend the interests of all members and cut production in an effort to lift prices.
Energy revenues account for about 35 percent of Algeria's gross domestic product.
West Texas Intermediate, the U.S. price index, followed Brent's lead early in the Monday session, gaining 1.2 percent to trade at $54.73 for the February contract.
