Disruptions in Red Sea recede; oil prices come down

New Delhi: As the shipping disruptions in the Red Sea fell, reducing concerns, the oil prices steadied after a sharp fall on Thursday, IANS reported.

However, conflict in the Middle East keeps rising.

Media reports said that Brent crude futures inched up 10 cents, or 0.1 per cent, to $79.75 a barrel by 0424 GMT, while US WTI crude futures were trading 5 cents lower at $74.06 a barrel.

It said that prices dropped nearly 2pc on Wednesday as major shipping firms began returning to the Red Sea.

"Concerns about shipping in the Red Sea have eased, but continued worries about tensions in the Middle East, especially on Iran's involvement in the region, make it difficult to sell further," said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.

"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," he said.

Recently, there were attacks by the Houthis on ships sailing through the Red Sea. The attacked ships were supposed to be heading to Israel, and Houthis stated that the attack was intended to stop Israel's offensive in Gaza.

The United States on Monday announced a 10-nation multinational security initiative to defend trade in the Red Sea after Houthis of Yemen started attacking shipping lines, forcing shipping firms to suspend operations in the region, Al Jazeera reported.

Houthi leader Mohammed Al-Bukhaiti said that even if America successfully rally the whole world, the militant group will continue operations until the genocide in Gaza stops. The fight will continue until food, medicine, and fuel are constantly supplied into Gaza, he said and added that Houthis do not matter the sacrifices it costs.

When Yemen's defence ministry stated that the country would not join US multinational defence in the Red Sea, the vice president of Yemen's internationally recognized Presidential Leadership Council and president of the pro-independence Southern Transitional Council Aidarous Al-Zubaidi said that Yemeni troops would take part in any multilateral cooperation to safeguard global shipping routes.

Houthis reaction and hostile announcement came after that.