Energy
Tuesday, February 20th, 2024 5:51 pm EDT
Key Points
- U.S. crude oil futures remained near three-month highs amid ongoing conflict in the Middle East.
- The West Texas Intermediate (WTI) contract for March saw a slight decline of 4 cents to $79.15 a barrel, while the Brent contract for April dropped by $1.15 to $82.41 a barrel, with no WTI settlement on Monday due to the President’s Day holiday.
- Crude futures surged last week as tensions escalated in the Middle East, despite concerns over inflation in the U.S. and a bearish demand outlook from the International Energy Agency. Houthi militants’ attacks on cargo ships in the Bab el-Mandeb strait underscored ongoing threats to commercial vessels in the Red Sea, prompting shipping giants like Maersk to reroute cargo around the Cape of Good Hope.
U.S. crude oil futures remained near three-month highs on Tuesday amidst continued turmoil in the Middle East. The West Texas Intermediate (WTI) contract for March experienced a marginal decline of 4 cents to $79.15 a barrel, while the Brent contract for April saw a more significant drop of $1.15 to $82.41 a barrel. With no WTI settlement on Monday due to the President’s Day holiday, last week saw U.S. crude oil gaining 3%, settling at $79.19 a barrel, its highest since November 6th. Similarly, the global benchmark experienced a 1.5% rise, settling at its highest price since January 26th. The surge in crude futures was fueled by the escalating conflict in the Middle East, particularly after Israel initiated strikes in Lebanon and reaffirmed its offensive in Gaza. Despite persistent inflation concerns in the U.S. and a pessimistic demand forecast from the International Energy Agency, the market largely shrugged off these factors. Monday saw Houthi militants launching an attack on another cargo ship in the Bab el-Mandeb strait, compelling the crew to abandon the vessel. These Iran-allied militants claimed to have inflicted “catastrophic damage” to the ship, underscoring the ongoing threats faced by commercial vessels in the Red Sea. This situation has led shipping giants like Maersk to reroute cargo around the Cape of Good Hope in Africa. Analysts, such as Tamas Varga from oil broker PVM, noted that Houthi attacks on cargo ships are intensifying in the Red Sea and Gulf of Aden, suggesting a continued risk to maritime transportation.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/02/20/crude-oil-prices-today.html
