ANKARA, (Turkey) : Oil prices increased today (Feb 22) with a weaker US dollar and concerns over conflicts in the Red Sea, putting global oil transit at risk, reported the Anadolu news agency.
The international benchmark crude Brent traded at US$83.34 (RM398) per barrel at 10.27am local time (0727 GMT), a 0.37 per cent rise from the closing price of US$83.03 a barrel in the previous trading session yesterday (Feb 21).
The American benchmark, West Texas Intermediate (WTI), traded at the same time at US$78.22 (RM374) per barrel, up 0.40 per cent from Wednesday's close of US$77.91 (RM372) per barrel.
The depreciation in the US dollar against other currencies made oil cheaper for foreign currency traders and boosted trade in support of higher prices. The US dollar index, which measures the US dollar's value against other currencies, fell 0.18 per cent to 103.81.
Tensions are rising in the Red Sea due to Houthi attacks on commercial ships supporting Israel and counterattacks by US and British forces.
Meanwhile, data indicating weakening demand in the US, the world's biggest oil-consuming country, restricted the rise in prices.
The American Petroleum Institute's latest data released on Wednesday revealed that crude oil inventories exceeded market expectations and increased by 7.16 million barrels last week, compared to estimates of a stock rise of 4.29 million barrels. Official stock data from the US Energy Information Administration will be released later in the day.
However, prices came under downward pressure, with analysts assuming that the US Fed will keep interest rates higher for longer. The minutes of the Federal Open Market Committee meeting published on Wednesday showed that officials are concerned about the rapid loosening of monetary policy. — Bernama
Keywords: oil prices, wti, brent, global oil transit