Oil Settles Lower on Expected Halt to Houthi Shipping Attacks
Oil prices settled lower on Thursday with Yemen's Houthi militia expected to halt attacks on ships in the Red Sea, and investors weighing strong U.S. retail sales data.
Brent crude futures settled down 74 cents, or 0.9%, at $81.29 per barrel, after rising 2.6% in the previous session to their highest price since July 26.
U.S. West Texas Intermediate crude futures settled down $1.36, or 1.7%, to $78.68 a barrel, after gaining 3.3% on Wednesday to their highest price since July 19.
U.S. crude futures fell more than $2 at times during the session.
Maritime security officials said they were expecting the Houthi militia to announce a halt in its attacks on ships in the Red Sea, after a ceasefire deal in the war in Gaza between Israel and the militant Palestinian group Hamas.
The attacks have disrupted global shipping, forcing firms to make longer and more expensive journeys around southern Africa for more than a year.
"The Houthi development and the ceasefire in Gaza help the region stay calmer, taking some of the security premium out of oil prices," said John Kilduff, a partner at Again Capital in New York.
"It's all about oil flows," Kilduff added.
But investors remained cautious, as the leader of the Houthis said his group would monitor the implementation of the ceasefire deal, and continue its attacks on vessels or Israel if the deal is breached.
Source : Reuters
