2023.12.2819:13:00UTC+00Oil Futures Settle Sharply Lower On Easing Concerns About Trade Disruptions

Crude oil prices fell sharply on Thursday amid easing concerns about trade disruptions after several shipping companies announced their decision to resume transit via the Red Sea.

West Texas Intermediate Crude oil futures for February ended down $2.34 or 3% at $71.77 a barrel.

Brent crude futures for March dropped about 3% to $77.15 a barrel.

Denmark shipping giant Maersk said it will route nearly all of its container vessels through the Suez Canal, and divert only a few around Africa.

France's CMA CGM reported earlier in the week that it has increased the number of vessels traveling through the Suez Canal.

Oil prices found some support after data from U.S. Energy Information Administration (EIA) showing crude stockpiles fell by nearly 7 million barrels in the week ended December 22, as against an expected drop of 2.7 million barrels.

Gasoline stocks dropped by 0.575 million barrels last week, as against a 0.208 million barrels build, while distillate stockpiles increased 0.833 million barrels, compared with expectations of an increase of 0.6 million barrels.