Crude futures inched higher as extreme cold disrupts U.S. oil production and Middle East tensions grow following more U.S. strikes against Houthi anti-ship missiles.
“Sustained disruptions to Red Sea flows will increase the pressure on energy markets over time,” BMI Research said. Yet, “energy-price action has been fairly muted in response to the crisis.”
According to BMI, the market sees risks of a broader conflict and supply disruptions as unlikely or limited.