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Crude oil futures end deeply in red as Red Sea worries fade

29 Dec 2023 Evaluate

Crude oil futures ended deeply lower on Thursday on easing concerns about trade disruptions after several shipping companies announced their decision to resume transit via the Red Sea. Crude oil prices fell despite data from U.S. Energy Information Administration (EIA) showing crude stockpiles fell by nearly 7 million barrels in the week ended December 22, as against an expected drop of 2.7 million barrels. Meanwhile, Gasoline stocks dropped by 0.575 million barrels last week, as against a 0.208 million barrels build, while distillate stockpiles increased 0.833 million barrels, compared with expectations of an increase of 0.6 million barrels.

Benchmark crude oil futures for January delivery fell by $2.34 or 3.2 percent to settle at $71.77 a barrel on the New York Mercantile Exchange. Brent crude for March delivery dropped by $2.39 or 3 percent to settle at $77.15 a barrel on London's Intercontinental Exchange.

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