Crude Prices Fell As Concern Eased About Red Sea Shipping Disruptions

247

  • Crude oil prices registered a decline of -0.68%, settling at 6007, as concerns eased over shipping disruptions along the Red Sea route.
  • Crude oil inventories increased by 1.837 million barrels during the week ending December 22, 2023, marking the largest weekly gain.
  • The crude oil market is currently under fresh selling pressure, with a gain in open interest by 3.49% to settle at 14803.

Crude oil prices registered a decline of -0.68%, settling at 6007, as concerns eased over shipping disruptions along the Red Sea route, despite ongoing tensions in the Middle East, reports Investing.

Denmark’s Maersk announced plans to route almost all container vessels sailing between Asia and Europe through the Suez Canal, with only a handful being diverted around Africa. In the US, crude oil inventories increased by 1.837 million barrels during the week ending December 22, 2023, marking the largest weekly gain since November 17.

The build-up follows a 0.939 million barrels rise in the previous week. Meanwhile, the US finalized contracts to purchase 3 million barrels of oil to replenish the Strategic Petroleum Reserve (SPR). The average cost per barrel was $77.31, below the 2022 average of $95 per barrel. This marks part of the effort to rebuild the SPR after last year’s historic sale.

Despite concerns about global oil supply disruptions, the market is responding to evolving geopolitical dynamics and inventory data. Exports of four main Nigerian crude oil grades in February are expected to average around 657,000 barrels per day, a slight decrease from the previous month.

From a technical perspective, the crude oil market is currently under fresh selling pressure, with a gain in open interest by 3.49% to settle at 14803. Support is identified at 5960, and a breach below could lead to a test of 5914. On the upside, resistance is observed at 6057, and a move above could see prices testing 6108.

Did you subscribe to our daily Newsletter?

It’s Free! Click here to Subscribe!

Source: Investing

7 COMMENTS

  1. he context in which a value comment is made is crucial. A statement that holds true in one context may not in another. For example, the value of time might be discussed differently in a business setting than in a casual conversation among friends.

  2. Simply desire to say your article is as surprising. The clearness in your post is simply excellent and i could assume you are an expert on this subject. Fine with your permission let me to grab your feed to keep up to date with forthcoming post. Thanks a million and please carry on the gratifying work.

  3. Its like you read my mind! You appear to know so much about this, like you wrote the book in it or something. I think that you can do with a few pics to drive the message home a little bit, but instead of that, this is excellent blog. A fantastic read. I’ll certainly be back.

  4. hello!,I like your writing very so much! proportion we keep up a correspondence extra approximately your post on AOL? I need an expert in this space to unravel my problem. May be that is you! Taking a look forward to see you.

  5. Simply desire to say your article is as surprising. The clearness in your post is simply excellent and i could assume you are an expert on this subject. Fine with your permission let me to grab your feed to keep up to date with forthcoming post. Thanks a million and please carry on the gratifying work.

  6. I do not even know how I ended up here but I thought this post was great I do not know who you are but certainly youre going to a famous blogger if you are not already Cheers

Comments are closed.