Oil prices rise on Yemeni drone attacks, US-Russia supply dynamics

Oil prices rose on Monday, December 18, 2023,
with Brent crude exceeding $77 per barrel and West Texas Intermediate approaching $72 per barrel.

The increase comes after a group of major shipping companies suspended their vessels from crossing the Red Sea,
raising concerns about disruptions to supplies through this vital artery for global oil trade.

Topic

Security threats in the Red Sea

Increased US oil supplies

Increased Russian gas exports to China

Conclusion

Security threats in the Red Sea

A group of major shipping companies suspended their vessels from crossing the Red Sea,
including MSC Mediterranean Shipping (MSC) and CMA CGM.

This came after the United States shot down 14 drones launched from areas controlled by the Houthi group in Yemen, which is backed by Iran.

The Houthis control the main ports in Yemen, including the port of Hodeidah,
one of the most important ports in the Red Sea.

Increased US oil supplies

Goldman Sachs said it expects Brent crude prices to range between $70 and $90 per barrel in 2024,
driven by increased US production.

Data from the US Energy Information Administration showed that
crude oil inventories in the United States fell by 4.5 million barrels last week,
the largest weekly decline since April 2022.

Increased Russian gas exports to China

Russian gas company Gazprom announced on Sunday that gas shipments to China set a new daily record,
compared to the previous day.

Gazprom did not disclose the volume of gas exported to China,
but it said last week that it is working to increase supplies to Beijing through the Power of Siberia pipeline.

Conclusion

Oil prices remain volatile, as concerns about supply disruptions compete with increased US production.

Oil prices rise on Yemeni drone attacks

Oil prices rise on Yemeni drone attacks

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