Brent crude rose $1.03, or 1.3%, to $78.07 a barrel by 0225 GMT, while U.S. West Texas Intermediate crude was at $72.53 a barrel, up 88 cents, or 1.2%.
Risks of the Israel-Gaza conflict escalating into a broader regional conflict increased over the weekend after US helicopters repelled an attack by Iran-backed Houthi militants on a Maersk container ship on Sunday in the Red Sea, sinking three Houthi ships and killing 10 militants. , according to testimony from American officials, Maersk and the Houthis.
Iran also supports Hamas, the ruling faction in Gaza that fights Israel, and groups other than Tehran across the Middle East have launched attacks on U.S. forces in the region and on Israel. A broader conflict could close crucial waterways for transporting oil resources, such as the Red Sea and the Strait of Hormuz in the Gulf.
“The oil price could be affected by the escalation of the situation in the Red Sea over the weekend and the peak demand season during China’s Spring Festival,” said Leon Li, an analyst. from Shanghai-based CMC Markets, referring to the Chinese New Year holiday. scheduled for early February.
He added that expected holiday demand is raising expectations for a price rebound in January.
Following the naval battle, an Iranian warship sailed into the Red Sea, Iranian media reported Monday. At least four tankers carrying diesel and jet fuel from the Middle East and India to Europe are taking the longer route around Africa to avoid the Red Sea, according to ship tracking data.
STIMULUS IN CHINA
Investor expectations for further stimulus measures in China rose after manufacturing activity declined for the third month in December, government data showed Sunday. However, a private sector report released Tuesday showed the sector expanding last month, even as factory owners’ confidence in the outlook for 2024 declined from November.
The prospect of slowing global economic growth and growing concerns about increased supply, particularly from producers outside the Organization of the Petroleum Exporting Countries (OPEC), have sent Brent tumbling and WTI by more than 10% in 2023, closing the year at their lowest level. levels since 2020.
Brent crude would average $82.56 a barrel in 2024, according to a Reuters poll released Friday, with analysts forecasting that weak global growth would cap demand, while geopolitical tensions could provide support. Brent averaged $82.17 in 2023.
Brent crude rose $1.03, or 1.3%, to $78.07 a barrel by 0225 GMT, while U.S. West Texas Intermediate crude was at $72.53 a barrel, up 88 cents, or 1.2%.
Risks of the Israel-Gaza conflict escalating into a broader regional conflict increased over the weekend after US helicopters repelled an attack by Iran-backed Houthi militants on a Maersk container ship on Sunday in the Red Sea, sinking three Houthi ships and killing 10 militants. , according to testimony from American officials, Maersk and the Houthis.
Iran also supports Hamas, the ruling faction in Gaza that fights Israel, and groups other than Tehran across the Middle East have launched attacks on U.S. forces in the region and on Israel. A broader conflict could close crucial waterways for transporting oil resources, such as the Red Sea and the Strait of Hormuz in the Gulf.
“The oil price could be affected by the escalation of the situation in the Red Sea over the weekend and the peak demand season during China’s Spring Festival,” said Leon Li, an analyst. from Shanghai-based CMC Markets, referring to the Chinese New Year holiday. scheduled for early February.
He added that expected holiday demand is raising expectations for a price rebound in January.
Following the naval battle, an Iranian warship sailed into the Red Sea, Iranian media reported Monday. At least four tankers carrying diesel and jet fuel from the Middle East and India to Europe are taking the longer route around Africa to avoid the Red Sea, according to ship tracking data.
STIMULUS IN CHINA
Investor expectations for further stimulus measures in China rose after manufacturing activity declined for the third month in December, government data showed Sunday. However, a private sector report released Tuesday showed the sector expanding last month, even as factory owners’ confidence in the outlook for 2024 declined from November.
The prospect of slowing global economic growth and growing concerns about increased supply, particularly from producers outside the Organization of the Petroleum Exporting Countries (OPEC), have sent Brent tumbling and WTI by more than 10% in 2023, closing the year at their lowest level. levels since 2020.
Brent crude would average $82.56 a barrel in 2024, according to a Reuters poll released Friday, with analysts forecasting that weak global growth would cap demand, while geopolitical tensions could provide support. Brent averaged $82.17 in 2023.