The US and UK air strikes on Yemen ignited the crude oil market: the US and Britain fluctuated and rose by more than 4% at one point
Zhao Hao, Financial Associated Press
2024-01-12 23:52:35
Financial Associated Press, January 12 (Editor Zhao Hao) After the United States and the United Kingdom jointly launched air strikes on Houthi armed targets in Yemen, international crude oil prices rose significantly. The United States and Burundi oil prices once rose by more than 4% during the day, reflecting the Palestinian-Israeli conflict. Intensification of spillover effects.
Specific market conditions show that the price of WTI crude oil futures for February delivery on the New York Mercantile Exchange once rose to US$75.25 per barrel, and has now fallen back to US$73.95 per barrel; the price of London Brent crude oil futures for delivery in March also once rose above 80. The U.S. dollar mark has fallen back to $79.45 a barrel.
At present, the gains in the United States and Brazil have narrowed to about 2.7%, but oil prices are at their highest level since December 27, 2023, and are expected to rise for the second consecutive week, and both oil prices have risen above 50 for the first time since the end of October last year. moving average.
Earlier in the day, the Yemeni capital Sanaa and other places were attacked by US and British air strikes. According to the Yemeni Houthi armed forces, the attack killed 5 armed personnel and injured 6 others. U.S. President Biden and British Prime Minister Sunak confirmed that the U.S. and British troops had launched an attack on the Houthi armed forces in Yemen.
Biden said U.S. forces, along with Britain and with support from Australia, Bahrain, Canada and the Netherlands, had successfully struck multiple targets used by the Houthis in Yemen. Biden called the strikes a direct response to Houthi attacks on international shipping in the Red Sea and would not hesitate to direct further steps.
In this regard, the Houthi armed forces in Yemen have recently announced that the air strikes in many places in Yemen are illegal and unreasonable attacks and a real threat to international peace and security. All “interests” of the United States and Britain are now “legitimate targets.” The statement emphasized that this attack poses a real danger to the Middle East and the consequences will be borne by the United States, Britain and Israel.
Since the middle of last month, the Houthi armed forces in Yemen have expanded the scope of their attacks on Israeli targets and begun to attack “Israeli-related ships” in the Red Sea. They have continued to escalate related threats, resulting in multiple cargo ships being attacked in nearby waters. Shipping companies announced rerouting to the Cape of Good Hope in South Africa.
Media analysts believe that the latest rebound in oil prices is due to market concerns that shipping will be more disrupted and that the Palestinian-Israeli conflict may expand into a broader regional conflict. ING analysts said that if the conflict spreads, the market will see oil flows from the Persian Gulf threatened. “While the risk is low, the impact will be huge.”
Market strategists at Saxo Bank believe that the air strikes have increased the risk of escalation, which may put oil and safe-haven demand into focus in the short term. If the conflict escalates, oil prices face upward risks. Volatility is likely to intensify as the market continues to evaluate the impact of OPEC+ production cuts, supply from non-OPEC+ countries, and oil demand prospects.
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2024-01-12 15:52:35
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