2023-12-28 22:40:51
Oil prices fell three percent on Thursday, in a sharp decline, with more shipping companies announcing their readiness to sail in the Red Sea, reducing fears of supply disruptions amid continued escalation of tension due to the Israeli aggression on the Gaza Strip.
Brent crude futures for March delivery, the most traded, fell $2.39, or three percent, to $77.15 per barrel upon settlement, while futures contracts for February delivery, which expired today following settlement, fell 1.3 percent to $78.39 per barrel, according to the agency. Archyde.com.
US West Texas Intermediate crude futures also fell by $2.34, or regarding 3.2 percent, to $71.77 per barrel.
Oil prices fell by regarding two percent on Wednesday, as major shipping companies began to return to the Red Sea route, which witnessed attacks by the Ansar Allah group “Houthis” on Israeli ships and others heading to Israeli ports.
A Archyde.com analysis of the operating schedule of the Danish shipping company Maersk showed on Thursday that the company will direct almost all container ships sailing between Asia and Europe through the Suez Canal from now on, while diverting only a small number to the Cape of Good Hope route.
The US Energy Information Administration reported a larger-than-expected draw in US crude oil inventories last week, which limited the decline in prices for a period.
Earlier this week, French shipping group CMA CGM said it intends to increase the number of its ships transiting the Suez Canal.
Administration data showed that crude oil inventories fell by 7.1 million barrels in the week ending December 22, compared to analysts’ expectations in a Archyde.com poll of a decline of 2.7 million barrels. The administration’s data also stated that crude inventories in the US Gulf Coast fell by 11.03 million barrels, the largest decline since August.
Investors expect interest rates in Europe and the United States to be lowered in 2024, which may boost the volume of demand for oil.
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