Oil prices experienced a more than one per cent decline on December 28 as concerns over shipping disruptions in the Red Sea eased, despite lingering tensions in the Middle East. The recent surge in crude prices, up approximately eight per cent since December, was driven by Houthi attacks on vessels, forcing diversions on longer voyages and escalating costs.
Red Sea Calm Tempers Crude Costs
The decline in oil prices is attributed to reduced apprehensions about shipping disruptions along the Red Sea route. Houthi attacks had previously prompted vessels to take longer, alternative routes, impacting supply chains and elevating crude prices. The current easing of concerns is reflected in the subdued trade environment and the downward movement in crude prices.
Did you subscribe to our daily Newsletter?
It’s Free! Click here to Subscribe
Source: mint
