Oil was steady after closing at a three-week high on escalating tensions in the Middle East, with the US and the Iranian-backed Houthis trading tit-for-tat strikes that have upended the global shipping market.
West Texas Intermediate held near $74 a barrel after jumping more than 2% on Thursday, with a drop in US inventories providing further support. The US has launched multiple attacks on Houthi targets in Yemen, but the militant group continues to menace shipping off the coast, forcing many vessels to make costly diversions. President Joe Biden said airstrikes will continue.
President Joe Biden said US air strikes against Iran-backed Houthi militants in Yemen will continue even though they have not halted the group's attacks on Red Sea shipping. Bloomberg's Kailey Leinz reports.
Crude has struggled to set a sustained direction in the opening weeks of the year as the lift from the tensions in the Middle East has been offset as traders dialed back bets the Federal Reserve will start cutting interest rates soon, hurting risk assets. In addition, the International Energy Agency said the market looks well-supplied given output from the US, Brazil, Canada and Guyana.
US nationwide commercial crude stockpiles fell 2.5 million barrels last week, to the lowest since October, according to the Energy Information Administration. While oil exports were strong, imports are also climbing as refiners make the most of cheap and plentiful Canadian supplies.
WTI for February delivery declined 0.1% to $74.03 a barrel at 7:52 a.m. in Singapore.
WTI ended at $74.08 on Thursday, the highest close since Dec. 27.
Brent for March settlement closed 1.6% higher at $79.10 a barrel on Thursday.
Source : Bloomberg
