LONDON: Oil prices rose on Thursday after data showed US crude stockpiles fell more than expected last week and a fresh attack by Houthi forces on ships off Yemen’s coast underscored the peril facing trade in a key global transit route.

Brent crude futures were up $1.29, or 1.6 per cent, to $81.33 a barrel at 1521 GMT , while US West Texas Intermediate crude was up $1.37, or 1.8pc, to $76.46 a barrel.

US crude stockpiles tumbled by 9.2 million barrels last week, the Energy Information Administration said, while analysts in a Reuters poll had expected a 2.2 million-barrel draw.

The draw was driven by a stark drop in US crude imports as winter weather shut in refineries and kept motorists off the road.

Geopolitical tensions in the Middle East remained in focus.

In the latest blow to shipping around the key Red Sea corridor, Maersk said explosions nearby forced two ships operated by its US subsidiary and carrying US military supplies to turn around when they were transiting the Bab al-Mandab Strait off Yemen, accompanied by the US Navy.

On Thursday, Yemen’s Houthi leader vowed to continue targeting ships linked to Israel until aid reaches the Palestinian people in Gaza.

“We are finally seeing energy markets wake up to the distinct possibility that these supply chain disruptions will rumble on for months yet,” said Joshua Mahony, chief market analyst at Scope Markets.

“The prospect of a military solution to ensure safe passage looks unlikely.” Oil prices also drew support from hopes for China’s economic recovery.

Published in Dawn, January 26th, 2024

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Military option
Updated 21 Nov, 2024

Military option

While restoring peace is essential, addressing Balochistan’s socioeconomic deprivation is equally important.
HIV/AIDS disaster
21 Nov, 2024

HIV/AIDS disaster

A TORTUROUS sense of déjà vu is attached to the latest health fiasco at Multan’s Nishtar Hospital. The largest...
Dubious pardon
21 Nov, 2024

Dubious pardon

IT is disturbing how a crime as grave as custodial death has culminated in an out-of-court ‘settlement’. The...
Islamabad protest
Updated 20 Nov, 2024

Islamabad protest

As Nov 24 draws nearer, both the PTI and the Islamabad administration must remain wary and keep within the limits of reason and the law.
PIA uncertainty
20 Nov, 2024

PIA uncertainty

THE failed attempt to privatise the national flag carrier late last month has led to a fierce debate around the...
T20 disappointment
20 Nov, 2024

T20 disappointment

AFTER experiencing the historic high of the One-day International series triumph against Australia, Pakistan came...