Crude Oil Market Shrinks, Supply Affected Due to War Conflict

<p>&nbsp;Crude oil prices fell again today due to oil supply disruptions in the Middle East following the attack by the United States (US) and United Kingdom (UK) forces on the Houthi group in Yemen who attacked ships in the Red Sea.</p><p><br /></p><p>Meanwhile, the Brent crude oil market fell 31 cents (0.4%) to $77.98 a barrel compared to a 1.1% gain last Friday. West Texas Intermediate (WTI) crude fell 32 cents (0.4%) to $72.36 compared to a previous gain of 1%.</p><p><br /></p><p>Both benchmarks surged more than 2% last week and hit their highest daily levels of the year after the Red Sea attacks.</p><p><br /></p><p>The US and UK launched dozens of airstrikes on Houthi bases in retaliation for months of shipwrecks.</p><p><br /></p><p><br /></p><p>President Joe Biden said the United States had sent a private message to Iran about the attack on the Houthis.</p><p><br /></p><p>According to Goldman Sachs analysts in his statement said since the Middle East conflict is not currently affecting production, the geopolitical risk premium in oil prices now looks moderate based on market volatility.</p><p><br /></p><p>He also said that they estimate that the price of oil will increase by 20% in the first month of the disruption of the Strait of Hormuz and may increase temporarily.</p><p><br /></p><p>In Libya, people began to speak out about corrupt practices and threatened to close two more oil and gas facilities after the Sharara field, which produces 300,000 barrels per day, was blocked on January 7.</p><p><br /></p><p>Last Friday, energy and natural gas companies in the United States braced for extreme cold throughout the week that is expected to increase demand while cutting supply in wells.</p>