Free Trial

Crude Steady As Weaker Risk Appetite Offsets Continued Red Sea Tensions


Oil prices fell slightly on Monday after rising over a percent on Friday, as the US Martin Luther King holiday impacted volumes. Prices fell during the European morning due to the stronger greenback (USD index up 0.2%), weaker risk appetite and little impact on supply from longer shipping routes but then rebounded following a Houthi missile strike on a US-owned vessel.

  • WTI is down 0.25% to $72.50/bbl off the intraday low of $71.23 but it had reached a high of $72.93 earlier on Monday. The benchmark is up 1.2% since the start of the year but the trend signals remain bearish. Initial support is at $69.28 and the bear trigger at $67.98 with the bull trigger at $76.18.
  • Brent is 0.2% higher at $78.45/bbl after falling to $76.85 but is still up 1.9% this month. It made a high of $78.65 earlier. Key short-term resistance is at $81.45 and the bear trigger at $72.67.
  • The US department of transportation has warned US merchant vessels to avoid the Red Sea after a US merchant ship was hit by a Houthi missile but without sustaining damage. An Oil Brokerage note reported that about 4% of active tankers are caught up in the Red Sea conflict.
  • Production has been disrupted in parts of North America due to very cold weather.

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.