2023.12.1809:07:00UTC+00Oil Prices Give Up Early Gains

Oil prices were slightly lower on Monday, giving up early gains as hawkish comments from Fed and ECB officials tempered investor optimism about rate cuts early next year.

The downside, however, remained capped by escalating tensions in the Middle East due to recent attacks on ships crossing the Red Sea.

Benchmark Brent crude futures slipped 0.1 percent to $76.44 a barrel, while WTI crude futures were down 0.2 percent, at $71.61.

New York Fed chief Williams said that a March cut seems 'premature', tempering market speculation about imminent rate cuts.

Fed Bank of Chicago President Austan Goolsbee as well as ECB officials Joachim and Madis Muller also indicated that it's too early to consider lowering borrowing costs. Fears of supply disruption lingered after Chinese container carrier OOCL said it has decided to suspend all shipments to and from Israeli seaports.

"Due to operational issues, OOCL will stop cargo acceptance to and from Israel with immediate effect until further notice," the firm announced Saturday on its website.

Earlier, shipping giants A.P. Moller-Maersk and Hapag-Lloyd stopped their ships from entering the southern entrance of the Red Sea in light of recent attacks on commercial ships by Houthi forces.

Meanwhile, Reuters reported Russia as saying that it would deepen oil export cuts in December by potentially 50,000 barrels a day or more in an attempt to support global oil prices.