Oil prices saw a 1% decrease earlier this week, influenced by a sluggish economic recovery in China and the strengthening of the US dollar. Despite ongoing naval and air conflicts in the Red Sea, concerns about potential disruptions to tanker routes and increased shipping costs did not provide the expected support to prices.
Factors Affecting Oil Prices
- Tensions in the Red Sea: Despite continuous conflicts in the Red Sea, recent US strikes against Iran-aligned Houthi militants in Yemen failed to boost oil prices. Analysts suggest that unless there is a substantial reduction in production, prices might encounter a limit.
- Chinese Economic Data: China’s fourth-quarter economic growth of 5.2% annually has raised uncertainties regarding the projected role of Chinese demand in global oil growth for 2024. Although China’s refinery throughput reached a record high in 2023, indicating…
