WTI moves higher to around $78.30 as Houthi Group strikes on shipping vessels in Red Sea
|- WTI price edges higher on escalated threat over supply disruption from the Middle East.
- Iran-led Houthis targeted Belize-flagged, British-registered cargo vessel Rubymar.
- European Union has deployed warships and early warning systems to safeguard shipping lanes in the Red Sea.
- Saudi Aramco is considering issuing a bond of up to maturity of 50 years in 2024.
West Texas Intermediate (WTI) oil price retraces its recent losses registered on Monday. WTI price trades higher around $78.30 per barrel during the Asian trading hours on Tuesday. The escalated threat of the oil supply disruption from the Middle East is supporting the prices of Crude oil.
The Iran-led Houthi group has conducted additional drone and missile strikes on shipping vessels in the Red Sea and Bab al-Mandab Strait. Among the targeted vessels was the Belize-flagged, British-registered cargo vessel Rubymar. As a result of the attack, the crew of the cargo vessel evacuated the ship off the coast of Yemen.
In response to these attacks, the European Union (EU) has initiated a naval mission, deploying European warships and early warning systems to safeguard shipping lanes in the Red Sea from further Houthi assaults.
Crude oil prices cheer the positive economic news from the largest oil importer China. The People’s Bank of China (PBoC) has opted to keep its one-year Loan Prime Rate (LPR) unchanged at 3.45%. However, the PBoC has reduced the five-year LPR by 25 basis points from 4.20% to 3.95% to support its struggling economy. Furthermore, China experienced a significant increase in annual tourism revenues during the national Lunar New Year holiday period.
Saudi Aramco is reportedly considering issuing a bond in 2024 with longer maturities of up to 50 years, according to Chief Financial Officer Ziad Al-Murshed. This planned issuance is part of the company's strategy to optimize its capital structure.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.