Oil prices rose today, Wednesday, as investors balanced fears of major producers reducing production and Houthi attacks in the Red Sea with weak expectations for a cut in US interest rates.
Brent crude futures rose 12 cents, or 0.15 percent, to $82.46 per barrel by 0100 GMT, while US West Texas Intermediate crude futures rose nine cents, or 0.12 percent, to $77.13.
Brent contracts fell 1.5 percent and West Texas Intermediate contracts fell 1.4 percent yesterday, Tuesday.
This comes after the United States used its veto power for the third time in the Security Council, against an Algerian draft resolution calling for an immediate ceasefire for humanitarian reasons.
Meanwhile, Houthi attacks on ships in the Red Sea and Bab al-Mandab Strait have continued, raising concerns about shipping flows through the vital waterway.
For its part, Russia said it intends to fulfill its quota in the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, in February despite the decline in oil refining. It had pledged to reduce production by 500,000 barrels per day as part of the OPEC+ cuts package.
The Russian Energy Minister said yesterday, Tuesday, that the production of refineries in Russia has decreased by seven percent since the beginning of the year, after the facilities were damaged by Ukrainian drone attacks.
Concerns that the Federal Reserve (the US central bank) will take longer to lower interest rates than expected have affected oil demand expectations.
US inflation data last week dampened expectations of an imminent start to a monetary easing cycle in the United States, with economists polled by Reuters now expecting a cut in borrowing costs in June.
A preliminary poll conducted by Reuters yesterday showed that US crude inventories rose last week, while distillate and gasoline inventories decreased.
Analysts polled by Reuters estimated that crude inventories rose by about 4.3 million barrels in the week ending February 16.
2024-02-21 06:44:02
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