US Bombs Bab el‑Mandab, but Oil Prices Took a Quick “Tango”
Recent U.S. airstrikes aimed at the Houthi insurgents in the Bab al‑Mandab strait sparked a lightning‑fast reaction in the market. Prices surged a bit, then snapped back to a comfortable mid‑$70s zone, proving that the Red Sea splash didn’t make a lasting splash in global oil pricing.
“What a Whirlwind!” – The Price Flicker
Immediately after the strike, the benchmark crude shot up to about $72 per barrel. Yet, like a frisbee caught in a wind tunnel, the spike didn’t last long. By the end of the day, the benchmark settled around $71, and has since been circling near that level—a gentle butterfly riffles rather than a roaring dam.
Red Sea Sky‑High? Not So Much!
So why did these strikes barely touch the market? The global economy’s pulse has slowed, making investors wary. Even though tensions in the region sparked excitement, the broader context—clip‑clopping worries about a slowdown in global trade and consumer spending—dampened the enthusiasm. Essentially, the Red Sea’s influence is like a whisper in a crowded room; it’s there, but nobody can hear it loudly.
OPEC+ on a Steady Cruise
- Demand Drag: Demand for crude is relaxing, a natural side effect of the worldwide economic deceleration.
- Supply Shuffle: OPEC+ plans to bump production by 138,000 barrels per day starting next month—an incremental roll‑out that was originally slated for December but got pushed to early April. This careful approach keeps the market from tipping too hard either way.
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