also, try applying pressure to lift the loop, while the key is already turned in the cylinder. Turning the key will remove the locking pressure that holds the parts together.
I'm coming to the view that the key and cylinder work, but the steel balls that wedge into the legs of the shackle, or their springs, are rusted. When (if) you get it open, you will see the rounded notches cut into the legs of the shackle, that the retaining balls press into.
in this case, you could tap on the top of the shackle with, say, a screwdriver handle, and tap or pull it upwards. This may give enough movement to loosen the parts so they start to move. When working properly, the locking balls move inwards when you turn the cylinder with the key (I can't find a sectional diagram)
Resist the temptation to use enough violence to damage the bike or the lock.
There are some padlocks that will withstand weather, dirt and rust, they don't work the same way.