Crude oil prices rose on Tuesday, January 9 after falling in the previous session, as markets weighed tensions in the Middle East against concerns about demand and increasing OPEC supply.
At 1117 GMT, Brent crude futures were up US$1.46, or 1.92%, at US$77.58 a barrel. and West Texas Intermediate (WTI) in the United States improved US$1.42, or 2.01%, to US$72.19.
According to analysts, geopolitical tensions in the Middle East and supply disruption in Libya supported prices on Tuesday.
“On the supply side, the closure of Libya’s largest oil field, which has affected about 0.3 million barrels a day of crude oil production, has some bullish factors,” said Suvro Sarkar of DBS Bank.
On the other hand, some large shipping companies continue to avoid the Red Sea. Germany’s Hapag-Lloyd said Tuesday it will continue to divert ships around the Cape of Good Hope, in the wake of maritime attacks by Yemen’s Houthi militants.
Refering to Gaza warthe Israeli military indicated that its fight against Hamas will continue through 2024, worrying markets about the possibility of the conflict becoming a regional crisis that disrupts oil supplies in the Middle East.
US Secretary of State Antony Blinken told Israeli leaders there is still a chance of gaining acceptance from their Arab neighbors if they create a path to a viable Palestinian state.
The crude oil benchmarks recovered from the losses of 3% and 4% recorded on Monday, respectively, after the strong cuts by Saudi Arabia, the world’s main exporterin their official sales prices.
With information from Reuters.
Source: Larepublica
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