Brent oil futures expiring in February dropped 0.4 per cent to $79.04 a barrel, while WTI crude futures were flat at $73.76 a barrel
Oil prices kept to a tight range in holiday-thinned Asian trade on Tuesday, as markets weighed the chances of continued supply disruptions in the Red Sea against concerns of higher production in 2024.
Crude prices saw some gains over the past week as attacks on vessels in the Red Sea disrupted shipping routes in the region, pointing to some potential delays in oil deliveries through the Suez Canal.
But further gains in oil prices were held back by the possibility of higher production next year, as Angola left the Organization of Petroleum Exporting Countries (OPEC) on disagreements over recent production cuts. The African nation is now expected to raise output in the coming year.
U.S. production was also seen at record peaks in December, as the country stepped in to fill an output gap left by recent production cuts from the OPEC. High U.S. production, along with largely underwhelming cuts from the OPEC, pushed up concerns over oversupplied oil markets in 2024, presenting a weak outlook for prices.
Brent oil futures expiring in February dropped 0.4 per cent to $79.04 a barrel, while WTI crude futures were flat at $73.76 a barrel by 01:15 GMT. Trading volumes were limited with Christmas holidays in several major markets.
Brent and WTI prices were set to lose nearly 8 per cent each in 2023, as a series of production cuts from the OPEC did little to offset persistent concerns over worsening crude demand.
A post-COVID recovery in top oil importer China largely failed to materialize this year, while major euro zone economies slid into recession amid high inflation and tighter monetary conditions.
