Oil prices stabilized after a notable decline in the previous session, with concerns over shipping disruptions in the Red Sea easing. Despite escalating tensions in the Middle East, reports suggest a slight rebound in Brent crude futures, up 10 cents to $79.75 per barrel, while U.S. WTI crude futures dipped 5 cents to $74.06 per barrel around 0424 GMT.
The decrease in prices, nearly 2% on Wednesday, coincided with major shipping companies resuming operations in the Red Sea. Analysts attribute the stabilization to the alleviation of worries about shipping in the region. However, persistent concerns regarding Middle East tensions, particularly Iran's involvement, are preventing a more significant rebound, according to Hiroyuki Kikukawa, President of NS Trading, a unit of Nissan Securities.
Kikukawa noted, "The market is likely to try the upside again… maybe in the early new year, also on expectations of a recovery in fuel demand thanks to monetary easing in the United States and higher kerosene demand during the winter in the northern hemisphere." This suggests a potential upward trend in oil prices in the coming months, fueled by both geopolitical factors and anticipated shifts in demand.
(With Agency Inputs)
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