Crude oil prices went up for the first time since the last ten days of October. On December 18, the price of Brent rose above $78 per barrel. This was due to problems with supplies through the waters of the Red Sea.
Yemen’s Houthis have increasingly targeted merchant ships in the region, prompting major shipping lines to temporarily halt transit. Egypt is monitoring tensions in the region after the United States reported downing area drones launched by the Iran-backed Houthis. Ridus.ru writes about this.
Due to growing threats, major cargo suppliers have announced they will stop using this route.
In addition, jet fuel plants in Asia are benefiting from increased tourism demand. All this has a positive effect on the situation on the oil market. The recovery in air travel following the coronavirus pandemic is accelerating in China, the United States and India.
According to BloombergNEF, at the end of January next year, daily demand for jet fuel in the DPRK will increase to 860 thousand barrels. This is the maximum level since 2020. Demand for aviation fuel is also expected to increase in India. The reasons are the beginning of the festive season and the increase in the number of business trips.
However, global warming may negatively impact kerosene consumption in the United States, Europe and Japan. JP Morgan experts warn that the likelihood of another abnormally warm winter could reduce demand by 500-700 thousand barrels.
Despite all these factors, experts are cautious in their forecasts for oil and have not yet changed their negative forecasts.
Source: Rosbalt
Mario Twitchell is an accomplished author and journalist, known for his insightful and thought-provoking writing on a wide range of topics including general and opinion. He currently works as a writer at 247 news agency, where he has established himself as a respected voice in the industry.
