Oil prices are steady on Thursday after falling sharply in the previous session as tensions in the Middle East continued and concerns over shipping disruptions in the Red Sea eased. Prices fell nearly 2% on Wednesday as major shipping companies began returning to the Red Sea.
Brent crude futures were up 10 cents, or 0.1%, at $79.75 a barrel as of 04:24 GMT, while West Texas Intermediate (WTI) crude futures were down 5 cents at $74.06 a barrel.
Concerns about shipping in the Red Sea have eased, but ongoing concerns about tensions in the Middle East, particularly Iran’s interference in the region, are making sales difficult. The market is likely to try to rise again early in the new year. There may be a recovery in fuel demand thanks to monetary easing in the USA and increased fuel demand in the northern hemisphere during winter months.
Israel’s protracted military campaign against Gaza and the possibility of the conflict expanding into attacks on ships in the Red Sea continue to be key drivers of market sentiment.
Maersk said it plans to have several dozen container ships traveling through the Suez Canal and the Red Sea in the coming weeks, thanks to multinational measures taken in the region after Yemen called for a temporary halt to the Red Sea route following attacks by Iran-backed Houthi militias.
US government data on fuel stocks will be released on Thursday, with a one-day delay due to the Christmas holiday on Monday.
Data from industry group the American Petroleum Institute on Wednesday showed crude oil inventories rose by 1.84 million barrels in the week ended Dec. 22; This was contrary to analysts’ forecasts for a decline of 2.7 million barrels.
