Global Oil Prices Surge on Red Sea Tensions and Uncertain US Demand Outlook

Friday January 19, 2024 - 19:24:19
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Staff Reporter
Dubai (diplomat.so) - Global oil prices experienced a surge on Friday, attributed to positive expectations regarding worldwide oil demand and heightened supply risks from the ongoing Red Sea conflict. The international benchmark, Brent crude, saw a modest 0.02% increase to $79.12 per barrel, while the American benchmark, WTI, rose by 0.14% to $74.06 per barrel. Despite projections of a global oil production increase by OPEC and the IEA, uncertainties in the US demand outlook supported the price upturn.
Unexpectedly, US Energy Information Administration data revealed a 2.5 million barrel reduction in commercial crude oil inventories, contrary to expectations, though a simultaneous rise in gasoline inventories raised questions about demand recovery. The Red Sea tensions, marked by a Houthi attack on a US vessel, further heightened concerns about global supply chain disruptions, injecting geopolitical complexities into the oil market dynamics. Market participants are closely monitoring the evolving situation for its potential impact on oil prices and global energy markets.

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