Oil prices start week with thin trade due to Christmas holiday break

By Sibel Morrow

Crude oil prices declined on Monday during thin Christmas trade amid questions about unity among OPEC+ producers and concerns on Red Sea trading routes due to attacks from the Yemeni Houthi rebel group.

The international benchmark crude Brent traded at $78.80 per barrel at 0659 GMT, a 0.45% decrease from the closing price of $79.16 a barrel in the previous trading session on Friday.

The American benchmark, West Texas Intermediate (WTI), traded at the same time at $73.49 per barrel, down 0.54% from Friday's close of $73.89 per barrel.

The majority of global markets are closed on Monday due to the Christmas holiday break.

Last week, both benchmarks gained more than $3 on average, with rising tensions in the Middle East and transport bottlenecks in the Red Sea raising supply concerns.

In response to Israel's attacks on the blockaded Gaza Strip, the Houthi organization declared that any Israeli-flagged ship would be targeted.

The Red Sea is one of the most important trading routes in the world, as approximately 12% of global trade passes through the Suez Canal.

Several international companies, including the Italian and Swiss-owned Mediterranean Shipping Company (MSC), Denmark-based shipper Maersk, German shipper Hapag-Lloyd, and France-based shipper CMA CGM, suspended all sailings in the Red Sea after security was compromised.

Following the British energy company bp’s announcement that it would stop all tanker traffic in the Red Sea, concerns were raised that seaborn deliveries, which have so far mostly affected the transportation of goods, could expand to energy shipments.

Experts say the prolonged inability of the Suez to operate may pose economic threats for regional countries such as Egypt, whose economy is already fragile.