Oil prices up $1 as Red Sea tensions lead to supply disruptions; Brent touches $80/bbl
insurance. Back home, on the Multi Commodity Exchange (MCX), crude oil futures due for a January 19 expiry, was last trading higher by 1.39 per cent at ₹6,253 per bbl, having swung between ₹6160 and ₹6,289 per bbl during the session so far, against a previous close of ₹6,167 per barrel.
-Oil pared some gains after weekly data from the US Energy Information Administration showed a surprise crude inventory build, larger than expected fuel stocks gains and record domestic oil production. -On Wednesday, Greece advised commercial vessels sailing in the Red Sea and the Gulf of Aden to avoid Yemeni waters.
Greek ship owners control about 20 per cent of the world's commercial vessels in terms of carrying capacity. -Washington launched a task force to safeguard commerce in the region. However, sources including shipping and maritime security officials told Reuters that few practical details are known about the initiative or whether it will directly engage in the event of further armed attacks.
-The Houthis vowed to defy the US-led naval mission and to keep targeting Red Sea shipping in support of Palestinian enclave Gaza's ruling Hamas movement. About 12 per cent of world shipping traffic passes up the Red Sea and through the Suez Canal. Although oil supply has been realigned, no shortages have yet emerged, according to Reuters.
-In a separate boost to prices, the US bought 2.1 million barrels of crude for delivery in February, its Energy Department said earlier this week, as the country continues to replenish its reserves. -Analysts attributed the present advance in prices to the interest rate-cut expectations, falling bond yields and dollar and healthy equity markets, along with the geopolitical temperature. Recent data
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