Oil is poised for its most significant weekly rise since October, fueled by the ongoing Red Sea crisis and China’s economic stimulus measures, potentially boosting demand.
Despite a slight 0.4% dip in early trading, the global benchmark Brent remains over $82 a barrel, having surged 3% on Thursday. Similarly, West Texas Intermediate has dropped 0.6% but hovers around $77 a barrel, close to a two-month peak.
The Middle East’s heightened tensions have propelled oil prices upward, with the UK and US targeting Iran-aligned Houthi rebels in Yemen to cease their assaults on commercial vessels.
IG Asia’s market strategist, Yeap Jun Rong, cautioned, “Past attempts to thwart Red Sea attacks haven’t successfully averted disruptions.”
In another development, strikes at Russian refineries are threatening oil flows amid the ongoing Ukraine conflict.
January has seen oil prices climb over 7%, bolstered by a larger-than-anticipated reduction in US stockpiles and Chinese government efforts to stabilize their economy.
