PT Solid Gold Berjangka | Oil Set for Weekly Gain as Red Sea Attacks, OPEC Unity in Focus

02:26 22 December in Commodity, PT SGB, SOLID GOLD BERJANGKA | SOLID GROUP

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Solid Gold Berjangka | Oil is poised to advance for a second week as shippers avoid the Red Sea amid increased attacks, while Angola’s exit from OPEC put the spotlight on the group’s unity.

West Texas Intermediate traded near $74 a barrel and is set for a second weekly gain after notching a string of seven declines. Tanker traffic in the Red Sea has plummeted after Iran-backed Houthi rebels in Yemen increased attacks on vessels in the region. Angola announced it’s leaving OPEC after 16 years, highlighting tensions within the producer group as it seeks to limit output going into the new year.

Crude is headed for its first annual drop since 2020 as the Organization of the Petroleum Exporting Countries and its allies attempt to counter surging output from nations outside the group, led by record US production. Meanwhile, the outlook for demand has also faltered, with the International Energy Agency reiterating that it expects growth to decelerate dramatically next year.

Angola had rejected a reduced output limit imposed by OPEC leaders to reflect the country’s dwindling capacity. While the country is unlikely to add significantly to global supply in the near term, its exit from the cartel shows discord and may renew skepticism that all members will stick to pledged production cuts.

So far this week, only about 30 tankers including crude oil and fuel carriers have entered the Bab al-Mandab Strait at the southern end of the Red Sea, according to vessel-tracking data compiled by Bloomberg. That’s a drop of more than 40% versus the daily average over the previous three weeks.

Houthi militants have been targeting merchant ships in a show of support of Hamas in its war with Israel. That has added pressure to global trade, with the Panama Canal — another key waterway for international shipping — severely disrupted by drought.

WTI for February delivery rose 4 cents to $73.93 a barrel at 8:10 a.m. in Singapore.

Brent for February settlement dropped 0.4% to $79.39 a barrel on Thursday.

Source : Bloomberg