PT Solid Gold Berjangka | Oil Drops as Dollar Revival Offsets Impact of Mideast Crisis

01:27 17 January in Commodity, PT SGB, SOLID GOLD BERJANGKA | SOLID GROUP

Minyak WTI Brent PT SGB Solid Group SG Berjangka Solid Gold Berjangka

Solid Gold Berjangka | Oil declined as the drag from a stronger US dollar and broader risk-off tone offset concerns over escalating Middle East tensions, including continued attacks on ships in the Red Sea by Iran-backed Houthi rebels.

West Texas Intermediate fell below $72 a barrel after ending Tuesday modestly lower, with global benchmark Brent a little above $78. The US currency posted its biggest one-day jump since March last year on Tuesday as traders recalibrated expectations for when the Federal Reserve will start cutting interest rates. That makes commodities less attractive for overseas buyers.

Tensions in the Middle East, meanwhile, remain in focus. Houthi militants in Yemen are still threatening shipping in the vital waterway off their coast despite military strikes by the US and UK. There’s concern the Hamas-Israel war will spread beyond Gaza, potentially drawing in Iran directly and imperiling crude supplies from the region that accounts for about a third of global output.

Oil’s been confined to a narrow range since the start of the year, as the Middle East crisis hasn’t so far led to a direct hit on physical production. Traders will get dual insights into the outlook later Wednesday as the Organization of Petroleum Exporting Countries releases its monthly market assessment, and a US industry group issues estimates for local crude stockpiles at a time when freezing weather has crimped output.

WTI for February delivery fell 0.6% to $71.98 a barrel at 7:50 a.m. in Singapore.

Brent for March settlement closed 0.2% higher at $78.29 a barrel on Tuesday.

Source : Bloomberg