Oil prices stabilise as Red Sea transport disruptions ease
Media reports said that Brent crude futures inched up 10 cents, or 0.1 per cent, to $79.75 a barrel by 0424 GMT, while U.S. WTI crude futures were trading 5 cents lower at $74.06 a barrel.
Oil prices steadied after falling sharply in the previous session, as concerns eased about shipping disruptions along the Red Sea route even as tensions in the Middle East continued to rise, media reports said.
Media reports said that Brent crude futures inched up 10 cents, or 0.1 per cent, to $79.75 a barrel by 0424 GMT, while U.S. WTI crude futures were trading 5 cents lower at $74.06 a barrel.
It said that prices dropped nearly 2 per cent on Wednesday as major shipping firms began returning to the Red Sea. “Concerns about shipping in the Red Sea have eased, but continued worries about tensions in the Middle East, especially on Iran's involvement in the region, make it difficult to sell further,” said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.
“The market is likely to try the upside again… maybe in the early new year, also on expectations of a recovery in fuel demand thanks to monetary easing in the United States and higher kerosene demand during the winter in the northern hemisphere,” he said.
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