Brent crude price on Wednesday, fell by 0.5% to $77 per barrel.
Gatekeepers News reports that a review of global crude oil prices as of 02:15 GMT+1, revealed that Brent was trading at $77.93 per barrel.
Also, the benchmark price for U.S. West Texas Intermediate crude futures (WTI) showed in a decline of 0.59%, to $71.97 a barrel.
The decline in oil prices can be attributed to the appreciation of the U.S. dollar, constraining demand for crude oil denominated in greenbacks.
Nevertheless, the mitigating the losses were the escalating risks of supply disruptions in the Red Sea due to the intensifying conflict.
The U.S. initiated fresh strikes against Iran-aligned Houthi rebels in Yemen on Friday, responding to a Houthi assault on a Greek vessel in the Red Sea.
On Tuesday, the continuation of the airstrike played a role in a modest elevation of Crude Oil prices in the global market, attributable to a substantial improvement in supply dynamics.
On Wednesday, the upward momentum of oil prices faltered, given the U.S. dollar’s proximity to a one-month peak following remarks from U.S. Federal Reserve officials opposing anticipations of substantial interest rate cuts.
Therefore, the stronger dollar reduces demand for dollar-denominated oil for buyers paying in other currencies.
Senior Commodity Strategist at ANZ Bank, Daniel Hynes in a note, said “The lack of response from the market to recent geopolitical risks suggests it is discounting the threat of supply disruptions. However, while no output has been lost so far, it is indirectly tightening in the market by pushing more supply onto the water.”
