Ana sayfa » Oil prices cling to gains as supply concerns in the Red Sea increased

Oil prices cling to gains as supply concerns in the Red Sea increased

Houthi attacks in support of Palestinians increase freight rates and shipping times


Oil prices on Tuesday maintained gains from the day before as attacks on shipping in the Red Sea raised supply concerns.

Brent crude oil futures were down 1 cent at $82.52 a barrel by 04:35 GMT, while WTI futures were up 1 cent at $77.59 a barrel.

Concerns around shipping disruptions in the Red Sea have supported a rebound in the price of crude oil overnight, and offset the impact of likely hawkish Fed expectations.

Houthi attacks in support of the Palestinians have increased freight rates and shipping times.

The ceasefire negotiations, which have intensified days before Ramadan, are about to yield results. Biden hopes to reach a temporary ceasefire agreement in Gaza by Monday. Israel and Hamas continue to publicly take very different positions on a possible ceasefire, blaming each other for the delays.

Both oil benchmarks rose more than 1% on Monday as markets factored in the possibility of longer-lasting rate cuts; This followed declines of 2-3% from the previous week.

Federal Reserve Bank of Kansas City President Jeffrey Schmid signaled that he, like many of his central banking colleagues, is in no rush to cut interest rates.

High borrowing costs generally reduce economic growth and oil demand.

Oil prices were also supported on Tuesday by signs that demand in China is increasing. Concerns about demand in China are easing as refiners continue brisk buying in the physical market following a boom in Lunar New Year travel.

The market will focus on weekly data on US crude stocks from the American Petroleum Institute industry group (API), which will be published at 21:30 GMT.

Analysts estimate that crude oil inventories increased by an average of 1.8 million barrels in the week to February 23.