2024-01-17 02:48:00
© Archyde.com. Oil pump cranes in northern Germany in a photo from Archyde.com archives.
By Colleen Howe
BEIJING (Archyde.com) – They fell on Wednesday as a rise curbed demand for crude denominated in the US currency, but rising risks of supply disruptions amid the raging conflict in the Red Sea limited losses.
Brent crude futures fell 36 cents, or 0.5 percent, to $77.93 per barrel by 0215 GMT. US West Texas Intermediate crude futures fell 43 cents, or 0.59 percent, to $71.97 per barrel.
It rose slightly on Tuesday while WTI fell, but the ongoing conflict in the Red Sea raised concerns that tankers would be forced to change course to avoid the region, increasing costs and the amount of time needed for delivery.
The US dollar hovered near the highest level in a month on Wednesday following comments from Federal Reserve (US central bank) officials opposing expectations of a significant cut in interest rates. The rise in the dollar reduces demand for dollar-denominated oil for buyers who pay in other currencies.
On Tuesday, the United States launched new strikes on the Yemeni Houthi group allied with Iran, following a Houthi missile targeted a Greek ship in the Red Sea.
British oil major Shell suspended shipments through the Red Sea following the American and British strikes began, but American producer Chevron (NYSE:) maintained its routes in the Red Sea.
(Prepared by Mahmoud Reda Murad for the Arabic Bulletin)
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