Oil prices continue to rise, with Brent crude edging towards $80 per barrel after a 1% surge yesterday largely influenced by geopolitical developments and concerns over disruptions in global trade, notably after the recent attacks by the Houthis on commercial ships in the Red Sea.
Currently, Brent crude stands at $79.82 per barrel, marking a 0.58% increase, while U.S. crude is at $74.53, marking a 0.57% increase.
Despite limited impact on oil supply so far, approximately 12% of global maritime traffic passes through the Red Sea and Suez Canal. In response to potential disruptions, the U.S. announced the purchase of 2.1 million barrels of crude for February delivery, boosting their total acquisitions to about 11 million barrels.
This move aligns with the U.S.’s efforts to replenish Strategic Petroleum Reserves following last year’s significant sale.
Reuters reported a rise in crude and fuel inventories in the U.S. last week, contributing to the overall increase in reserves.
S&P Global Commodity Insights forecasts a surplus in U.S. oil production, positioning the nation to meet increased global demand in 2024, potentially altering the dynamics of global oil markets.