Global oil benchmark Brent hovered near $80 a barrel on Wednesday amid jitters over global trade disruption and geopolitical tensions in the Middle East following attacks on ships by Yemen’s Iran-aligned Houthi forces in the Red Sea.
Brent crude futures were up 60 cents, or 0.8%, at $79.83 a barrel by 1552 GMT, while US WTI crude climbed 67 cents, or 0.9%, to $74.61 a barrel.
The benchmarks rose by more than $1 earlier in the session as major maritime carriers chose to steer clear of the Red Sea route, with longer voyages increasing the cost of transport and insurance.
Read Oil rises 2% on militant attacks
However, oil pared some gains after weekly data from the US Energy Information Administration showed a surprise crude inventory build, larger than expected fuel stocks gains and record domestic oil production.
“The United States is becoming this swing producer to the globe,” said Bob Yawger, Director of energy futures at Mizuho.
On Wednesday, Greece advised commercial vessels sailing in the Red Sea and the Gulf of Aden to avoid Yemeni waters. Greek ship owners control about 20% of the world’s commercial vessels in terms of carrying capacity.
Published in The Express Tribune, December 21st, 2023.
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