Oil prices climbed on Wednesday as geopolitical tensions in the Middle East raised supply concerns. One issue was unrest at a key oil field in Libya that produces about 300,000 barrels per day. it comes amid security concerns in the Red Sea over attacks on tankers.

Yahoo Finance's Ines Ferre breaks down the details, providing insights into the market outlook on oil moving forward.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Angel Smith

Video Transcript

JULIE HYMAN: We are watching oil prices as well. Today they're moving higher on heightened tensions in the Mideast, including a protest. Ines Ferre here with a look at today's action. Hey, Ines.

INES FERRE: Hey, Julie. Yeah, and today we saw oil prices surge more than 3%. This is partly because of a supply disruption at a Libyan oil field. That oil field, which produces about 300,000 barrels a day, was disrupted because of protests. And then you also have, of course, concerns around security concerns at the Red Sea because of Houthi rebels that have been hijacking or attempting at hijacking vessels at the Red Sea.

You had yesterday's price action also showing you the volatility that we've seen over the last couple of sessions here. You saw when Iran, which backs the Houthis, Iran had sent a warship into the Red Sea, so that sent oil prices higher. But then we went into negative territory for yesterday. And today we are seeing oil prices, which jumped back up again. So a lot of uncertainty, security concerns around the area as well that sending prices higher.

But you also have something very important that came out today, and that is a statement from OPEC. And that statement, we have it, that we're going to put it up for you on the screen, basically saying that its members vow for unity, that they are committed to sharing objectives of unity. And that statement is very important because the market has also been contemplating where oil prices are going to go with the OPEC production cuts this year.

You'll remember that with those deepening of cuts that OPEC announced at the end of last year that oil prices went down because the markets had some skepticism about those cuts, saying basically that they were voluntary. Then you had Angola, which has been a member for 16 years, which said that it was leaving the oil cartel. So the markets have been kind of skittish about what would be happening with these production cuts. There's also increased production in the US that analysts are saying are going to make up for those output cuts from OPEC.

But this statement is basically saying, look, we are united. And there is a meeting, a reported meeting that will be taking place among OPEC members at the beginning of February. Guys.

JULIE HYMAN: We'll be watching all of that very closely. Thanks, Ines.

INES FERRE: Thank you.