Let. Lt. Col. Daniel Davis unravels the geopolitical threats in the Red Sea and Gaza Strip in the Evening Edit.
Oil prices rose nearly 2% at the start of the year, due to concerns about supply disruptions caused by ongoing conflicts in the Middle East, as well as strong holiday demand and expectations for economic stimulus from China, the largest oil importer.
Brent crude rose $1.28 (1.7%) to $78.32 a barrel by 4:38 p.m. Japan time, while US West Texas Intermediate crude rose $1.04 (1.7%) to $78.32 a barrel. 5%) to $72.69 per barrel.
Economists and industry analysts expect Brent crude to average $82.56 per barrel in 2024, slightly up from its 2023 average of $82.17. Analysts expect a weak global economy to limit oil demand, although geopolitical tensions could provide support, according to a Reuters poll.
Iranian-backed proxies in the Middle East continue to harass transport ships in the Red Sea, threatening oil supplies and risking the Israel-Hamas war escalating into a broader regional conflict and disrupting international trade. It's increasing.
Maersk suspends Red Sea voyages a day after Houthi attack ship
The sun is visible behind a crude oil pumpjack in the Permian Basin in Loving County, Texas, on November 22, 2019. (Reuters/Angus Mordaunt/File Photo/Reuters Photo)
On Sunday, US helicopters repelled an attack by Iranian-backed Houthi militants on a Maersk container ship in the Red Sea, sinking three Houthi ships and killing 10 militants.
“Oil prices may be affected by the weekend's rise in Red Sea oil prices and the peak demand period during China's Spring Festival,” Leon Li, an analyst at Shanghai-based CMC Markets, told Reuters. There is a gender,” he said.
Li added that forecasts of increased demand during February's Chinese New Year holiday are also raising expectations for price increases this month.
Major shipping company launches “Operation Prosperity Guardian” to resume Red Sea voyages
A Maersk container ship transits the Suez Canal in Suez, Egypt, heading to the Red Sea. (Christian Helgesen/Bloomberg via Getty Images/Getty Images)
China may also introduce new stimulus measures that could boost oil demand after manufacturing activity contracted for the third straight month in December, according to government data.
Meanwhile, the escalation of conflict in the Middle East could lead to the closure of major oil shipping routes in the Red Sea and the Strait of Hormuz in the Gulf. Iranian warships sailed into the Red Sea after Sunday's attack, Iranian state media reported on Monday, according to Reuters.
IKEA warns of product delays due to Houthi rebel attacks on Red Sea ships
In this photo released on November 20, 2023, a Houthi military helicopter flies over the Galaxy Leader cargo ship in the Red Sea. (Houthi military media/Handout via Reuters//File Photo/Reuters Photo)
According to Reuters, tracking data shows that at least four tankers transporting diesel and jet fuel from the Middle East and India to Europe are taking costly detours around Africa to avoid the Red Sea. found.
Maersk announced on Sunday that it was once again suspending all sailings through the Red Sea and Gulf of Aden.
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The announcement comes just a week after Maersk officials said they would reopen routes through the region that had been halted due to similar attacks.
The Denmark-based shipping giant said its shipping route through the Bab el-Mandeb Strait was temporarily suspended in early December due to attacks on its vessels, and the Suez Canal, which is frequented by ships from around the world, is closed to most shipping routes. He said it became unstable.
Fox Business' Greg Wehner, Fox News' Jennifer Griffin and Reuters contributed to this report.
