Oil prices rose after the attack on a ship in the Red Sea raised concerns about shipping and geopolitical risks, while the dollar fell.
Brent crude is trading above 76 dollars a barrel after the Houthis attacked a truck near Bab al-Mandab. While the dollar fell during Asian trading, with the “Bloomberg” greenback index falling after two sessions of appreciation, which boosted commodity prices denominated in dollars.
Crude oil prices remain near their lowest levels since June, although rising production by non-OPEC countries, especially the United States, has raised fears of oversupply.
Moreover, doubts are hovering over the commitment of the members of the organization “OPEC+” to the decision of voluntary reduction of members at their last meeting.
It is worth noting that oil has fallen over the past seven weeks, the longest decline since 2018, and it has slipped by about a fifth since late September.
Citigroup believes that OPEC+ needs to continue cutting production over the next year to keep oil prices in the range of 70-80 dollars per barrel, amid expectations of a slowdown in Chinese consumption growth next year and the possibility of the United States slipping into recession.
