Oil Extends Drop as Risk-Off Tone Counters More Attacks on Ships - Tools for Investors | News
Stock Markets
Daily Stock Markets News

Oil Extends Drop as Risk-Off Tone Counters More Attacks on Ships


(Bloomberg) — Oil declined for a second session as a risk-off tone in broader markets countered escalating attacks on ships near Yemen.

Most Read from Bloomberg

Brent slipped below $85 a barrel and West Texas Intermediate fell toward $80. The drop came despite two vessels being attacked, with one abandoned after flooding and another sustaining moderate damage. A coal-carrier sunk recently as Houthi militants ramped-up hostilities in the region.

In wider markets, other commodities were lower and Asian equities declined, ahead of a week that includes measures of inflation that will help guide bets on interest rates. The dollar also held near the highest level since November, making commodities more expensive.

Crude still remains on track for a monthly gain, and there are signs of rising gasoline demand in the US and healthy demand for air travel, which is aiding the outlook. The prompt spread for Brent has strengthened this month in a bullish backwardation structure, signaling tightening supply.

In Iran, snap elections will be held on Friday following the death of Ebrahim Raisi in a helicopter crash last month. The vote comes at a time of heightened tensions between Iran and the West, with Tehran mobilizing a regional network of proxy militias to target Israel.

To get Bloomberg’s Energy Daily newsletter into your inbox, click here.

Most Read from Bloomberg Businessweek

©2024 Bloomberg L.P.



Source link

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Get more stuff like this
in your inbox

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.

Thank you for subscribing.

Something went wrong.