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Oil Exhibits a Downward Trend As the Crisis in the Red Sea is Closely Monitored

Bruno T
December 27 2023 12:44AM

Oil is showing a downward bias after the strong gains of the previous day, as investors monitor developments in the Red Sea and some major carriers resume passage through the area, despite ongoing attacks and broader tensions in the Middle East.

Benchmark indices rose more than 2% in the previous session due to fears of disruptions in maritime transport, as well as hopes for cuts in U.S. interest rates that could boost economic growth and fuel demand. Major shipping companies, such as Maersk and the French CMA CGM, resumed activities after the deployment of a multinational task force to the region. Reports from the API (American Petroleum Institute) and the EIA (U.S. Energy Information Administration) are expected today and tomorrow.

Recently, Brent oil (CCOM:OILBRENT) for February was down 0.27% (US$ 80.85), and the contract for March, with increasing liquidity, showed a larger decline (-0.42%, to US$ 80.51). WTI (West Texas Intermediate) for February (CCOM:OILCRUDE) fell 0.56%, to US$ 75.12 per barrel.