Brent futures market closed today, transit concerns through Red Sea easing

The ICE Brent Futures market is closed for trading today on account of Christmas. Front-month ICE Brent closed at $79.07/bbl on Friday, which is $1.16/bbl lower than the price was at 09.00 GMT Friday.

PHOTO: Brent crude price chart. Getty Images

Here's a recap of what factors could drive prices.

Upward pressure:

Nigerian energy minister Heineken Lokpobiri last week reaffirmed the country’s commitment to OPEC. “We are resolute in our dedication to OPEC’s objectives while actively engaging with the organisation to address concerns that resonate not only within our nation’s borders but across the entire continent,” he stated.  

Lokpobiri's statement reaffirming Nigeria's commitment to OPEC appears to be significant, especially in the wake of Angola's decision to leave the OPEC. On Thursday, Angola announced it is leaving the oil group, citing that membership no longer aligns with its interests. Angola is one of the biggest oil producers in Africa. According to OPEC data, Angola produced 1.13 million b/d of crude oil in November, while Nigeria produced 1.37 million b/d.

Downward pressure:

Danish container shipping A.P. Moller-Maersk (Maersk) on Sunday released a customer advisory stating that it is preparing to resume transit through the Red Sea both eastbound and westbound. The move comes after a US-led multi-national security initiative — Operation Prosperity Guardian (OPG) — was launched last week.

Several shipping firms, including Maersk, had temporarily halted transit through the Red Sea because of recent attacks on vessels by Yemen-based Houthi militants. On Tuesday, the US launched OPG aimed at countering attacks on international shipping in the Red Sea. Meanwhile, Spain, Italy and France have launched independent operations to tackle the attacks.

By Nithin Chandran

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