iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

Oil Prices Decline on Red Sea Conflict Escalation and Dollar Strength

17 Jan 2024 , 08:19 AM

Wednesday saw a decline in oil prices as demand for petroleum denominated in US dollars was restricted by the growing danger of supply interruptions brought on by the escalating Red Sea conflict.

The price of a barrel of the benchmark Brent crude decreased 36 cents, or 0.5%, to $77.93. West Texas Intermediate (WTI) oil futures for the United States dropped 43 cents, or 0.59%, to $71.97 per barrel.

Tuesday saw a modest uptick in Brent crude while WTI declined as investors perceived a weakening of U.S. fundamentals. However, the continuous air and naval skirmishes in the Red Sea raised concerns that tankers would have to reroute to avoid the region, increasing delivery times and costs.

The US dollar was trading close to its one-month peak on Wednesday following remarks made by Federal Reserve members against excessive expectations for rate cuts. When purchasers pay in other currencies, there is less demand for oil priced in dollars due to the strengthening dollar.

Tuesday saw the U.S. launch additional attacks against the Houthi terrorists in Yemen who are affiliated with Iran following a Houthi missile that collided with a Greek vessel in the Red Sea.

Following the start of the US and UK strikes, British oil company Shell stopped shipping through the Red Sea; however, US producer Chevron is continuing to use its Red Sea routes.

For feedback and suggestions, write to us at editorial@iifl.com

Crude oil processing 9% lower in August due to weaker demand | Zee Business

Related Tags

  • crude oil
  • Dollar
  • Middle East
  • Red Sea
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.