Oil prices increased as indications continued to be seen that U.S. crude stockpiles are declining as well as the rising Houthi attacks on vessels transiting the most important maritime route of the Red Sea.
Brent increased towards $78 per barrel while West Texas Intermediate (WTI) approached $73 a barrel.
According to the American Petroleum Institute, Cushing’s levels decreased last week, and overall stocks dropped by 5.2 million barrels. In the meantime, the Energy Information Administration projected a small worldwide supply shortfall.
The Houthis continued their attacks on commercial ships in the southern part of the Red Sea, but no casualties or damages have been reported. The incidents are thought to be a spillover from the Israeli war on Gaza, even though a US-led maritime force has been deployed.
Since the beginning of the year, crude oil has fluctuated, rising and falling on different days as traders try to predict the direction of the upcoming quarters.
Supply cuts by OPEC+, unrest in the Middle East, particularly the Red Sea, and power outages in Libya have all contributed to support the market. Nevertheless, a significant drop in Saudi Arabia’s official prices has raised the possibility of underlying weakness.
