Oil rises due to Red Sea tensions
Oil has begun to rise again due to tensions in the Middle East and the Red Sea. The Energy Information Administration stated that they anticipate a narrow global supply deficit.
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Brent crude rose to 78 dollars per barrel, while US crude oil was above 72 dollars. The American Petroleum Institute said that nationwide inventories fell by 5.2 million barrels last week, and levels in Cushing also declined. Additionally, the Energy Information Administration is forecasting a narrow global supply deficit.
OIL CONTINUES TO FLUCTUATE
Crude oil has been following a volatile path since the beginning of the year. The market has been supported by OPEC+ supply cuts, tensions in the Middle East including the Red Sea, and outages in Libya. Nevertheless, the deep cuts made by Saudi Arabia to official prices indicate an underlying weakness.
IG Asia market strategist Yeap Jun Rong said, "The combination of factors surrounding developments in the Middle East, the supply outlook, and slowing global growth are leading to this broader indecision in prices."