Oil prices steady as Red Sea tensions offset possible future rise in Angola output
By Scott DiSavino
NEW YORK (Reuters) -Oil prices were little changed on Friday ahead of the long Christmas holiday weekend as worries that Houthi attacks on ships in the Red Sea were boosting supply costs offset expectations Angola could increase output after leaving OPEC.
In addition, economic data from the U.S. was mixed as reports that inflation declined faster than expected offset a drop in new single-family home sales.
Brent futures fell 11 cents, or 0.1%, to $79.28 a barrel by 11:56 a.m. EST (1656 GMT), while U.S. West Texas Intermediate (WTI) crude fell 3 cents to $73.86.
That left both benchmarks on track to climb about 3% for the week after gaining less than 1% last week.
In the Middle East, more maritime carriers said they were avoiding the Red Sea due to attacks on vessels carried out by the Iranian-backed Houthi militant group, which says it is responding to Israel's war in Gaza.
Major shippers Maersk and CMA CGM said they would impose extra charges linked to re-routing ships.
The attacks have caused disruptions through the Suez Canal, which handles about 12% of world trade.
«Direct pauses to supply are not the only reason oil prices will be moved by the Red Sea situation; freight rates and insurance costs are increasing,» said PVM analyst John Evans about the impact of the disruption.
In Africa, meanwhile, Angola's decision to leave the Organization of the Petroleum Exporting Countries (OPEC) could open the way for Beijing to increase investment in the country's oil and other sectors. Angola produces about 1.1 million barrels per day of oil.
«It will take time for Angola oil production to rise even if China moves in there in a big way,» said Phil Flynn, an analyst at Price Futures Group, noting that the U.S.
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