New York — Oil prices slipped on Wednesday, eating into the previous day’s gains as investors monitored developments in the Red Sea, where shippers are returning despite further attacks on Tuesday.
Brent crude futures were down 53 cents, or 0.7%, at $80.54 a barrel by 10:59 a.m. EST (1559 GMT). U.S. West Texas Intermediate crude fell 67 cents, or 0.9%, to $74.90.
Danish shipping company Maersk said it has scheduled several dozen container vessels to travel via the Suez Canal and Red Sea in the coming weeks after calling a temporary halt to those routes this month after attacks by Yemen’s Iran-backed Houthi militia.
Both the Brent and WTI benchmarks settled more than 2% higher in the previous session as the latest attacks on ships in the Red Sea prompted fears of shipping disruption.
Israeli forces pummelled central Gaza by land, sea and air on Wednesday, a day after Israel’s Chief of Staff Herzi Halevi told reporters the war would go on “for more months.
Elsewhere, oil loadings at the Russian Black Sea port of Novorossiisk were suspended because of a storm. However, the Caspian Pipeline Consortium (CPC) terminal near the port was open, Kazakhstan’s energy ministry said.
Inventory reports from the American Petroleum Institute and the Energy Information Administration are expected on Wednesday and Thursday respectively, a day later than normal because of the Christmas holiday.
Oil output in Russia, the third largest producer in the world after the U.S. and Saudi Arabia, is expected to be steady or even to increase next year as Moscow has largely overcome Western sanctions, analysts said.
Reporting by Stephanie Kelly in New York, Robert Harvey and Noah Browning in London and Jeslyn Lerh in Singapore Additional reporting by Andrew Hayley in Beijing Editing by David Goodman, Jane Merriman and David Gregorio – Reuters
