Oil steadied after posting the largest weekly advance in more than two months, with shipping disruptions in the Red Sea in focus after a spate of Houthi attacks against vessels in the vital waterway.
West Texas Intermediate traded near $74 a barrel, after rallying by 3% in the prior week, the biggest advance since October. Ships have been forced to reroute following the strikes, prompting the formation of a new multi-national maritime task force to help protect commercial vessels. Container giant A.P. Moller-Maersk A/S now says it’s preparing to resume using the route.
Crude’s recent gains helped to pare a quarterly decline, with oil also on course for a loss of about 8% this year. Traders are concerned that despite pledges of further output cuts from the Organization of Petroleum Exporting Countries and its allies that global crude supply may run ahead of demand next year. Angola quit the producer group on Friday amid disagreements over quotas, but remaining members were quick to reaffirm the cartel’s unity.
WTI for February delivery was 0.3% higher at $73.77 a barrel at 7:49 a.m. in Singapore.
Brent for February settlement closed 0.4% lower at $79.07 a barrel on Friday.
Source : Bloomberg
