Oil prices increase as attention returns to the Middle East

4 Dec 2023 , 09:34 AM

On Monday, oil futures increased as Middle Eastern geopolitical tensions came back into focus, raising concerns over the region’s supply. However, the sector’s future was clouded by uncertainties around OPEC+ voluntary output cuts and the growth in global fuel consumption.

Brent crude futures had increased by 28 cents, or 0.4%, to USD 79.16 a barrel, while U.S. West Texas Intermediate crude futures had increased by 29 cents, or 0.4%, to USD 74.36 a barrel.

The Houthi militia in Yemen claimed drone and missile assaults on two Israeli vessels in the vicinity, and the U.S. military stated on Sunday that fighting had returned to Gaza and that three commercial vessels had been attacked in international seas in the southern Red Sea.

This week, there were 505 oil rigs in the United States, the most since September, according to a carefully watched report released on Friday by the energy services company Baker Hughes.

After falling more than 2% last week due to investor uncertainty on the extent of supply cuts by OPEC+—an alliance that includes Russia—and worries about slowing global manufacturing activity, oil prices are again beginning to rebound.

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