Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Oil Prices Jump ... Brent Crude Reaches $82.43

Fri 26 Jan 2024 | 05:23 AM
Taarek Refaat

Oil prices rose on Thursday to their highest levels since early December after US economic data showed faster-than-expected growth in the fourth quarter and as tensions in the Red Sea continued to disrupt global trade.

Brent crude futures rose $2.39, or 2.09%, to $82.43 per barrel.

US West Texas Intermediate crude gained $2.19, or 2.92%, to $77.26.

Meanwhile, the Yemeni Houthi leader said the group will continue targeting ships linked to Israel until aid reaches the Palestinian people in Gaza.

“We are finally seeing energy markets waking up to the distinct possibility that these supply chain disruptions will continue for several months,” said Joshua Mahoney, senior market analyst at Scope Markets.

He added, "The possibility of reaching a military solution to ensure safe passage seems unlikely."

A Ukrainian drone attack on an oil refinery in southern Russia overnight also raised concerns about supplies, said Bob Yawger, director of energy futures at Mizuho.

In the United States, a larger-than-expected decline in crude inventories last week, primarily due to extreme cold, supported prices. US inventories fell by 9.2 million barrels last week, according to the Energy Information Administration.

Oil prices also received support from expectations that the Chinese economy is recovering after the central bank announced a significant reduction in bank reserves on Wednesday.

Elsewhere, the prospect of continued high interest rates looms.