Futures Lose Ground on Easing Red Sea Worries

Crude oil futures are lower as concerns about shipping disruptions in the Red Sea ease and the market watches for the EIA’s weekly report on crude oil and products inventories. Analysts polled by The Wall Street Journal expect a 2.4 million-barrel draw on crude stocks. Peter Cardillo, chief market economist at Spartan Capital, notes “a surprise build up in stockpiles reported by the API.” If confirmed by EIA, it would mark a second consecutive week of unexpected inventory build with bearish implications for prices. WTI for February delivery is off 1.6% at $72.93 a barrel, and February Brent, which expires today, is down 1.5% at $78.44 a barrel.