Oil prices up $2 on supply disruption fears after latest Red Sea attack; Brent over $77/bbl
₹5,942 per bbl, having swung between ₹5,935 and ₹6,148 per bbl during the session, against a previous close of ₹6,027 per barrel. Also Read: India increases oil imports from Saudi as Russian purchases fall to 11-month low in December -A Reuters survey of economists and analysts predicted that Brent crude would average $82.56 a barrel this year, up slightly from the 2023 average of $82.17, with weak global growth expected to cap demand. Geopolitical tensions, however, could provide price support.
-US helicopters on Sunday repelled an attack by Iran-backed Houthi forces on a Maersk container vessel in the Red Sea, sinking three Houthi vessels and killing 10 of the militants, fuelling risks of the Israel-Hamas war becoming a wider conflict. -Danish shipper Maersk said it would decide on Tuesday whether to resume sending vessels through the Suez Canal via the Red Sea or redirect them around Africa after the attack, said a company spokesperson, according to Reuters. Also Read: Outlook 2024: Oil to hover between $80-$90/barrel in 2024; OPEC+ to dictate trends, say experts -A wider conflict could close crucial waterways for oil transportation.
At least four tankers carrying diesel and jet fuel from the Middle East and India to Europe are sailing around Africa to avoid the Red Sea, as per ship tracking data. -In China, investor expectations of fresh economic stimulus measures rose after manufacturing activity shrank for a third month in December, government data showed on Sunday. Any such stimulus could boost oil demand and support crude prices.
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