19.12.202309:06:00UTC+00Oil Prices Decline As Supply Concerns Ease

Oil prices declined on Tuesday after the U.S. announced plans to expand a naval task force to safeguard commercial shipping through the Red Sea against attacks by Yemen's Houthi rebels.

Benchmark Brent crude futures dropped 0.4 percent to $77.66 a barrel, while WTI crude futures were down half a percent at $72.47.

Several countries, led by the U.S. have agreed to jointly carry out patrols in the southern Red Sea and Gulf of Aden after the Iran-backed Houthis waded into the Israel-Hamas conflict by attacking vessels in vital shipping lanes, causing supply disruptions and raising supply concerns.

Countries including the U.K., Canada, France, Italy, Netherlands, Norway, Seychelles and Spain will take part in Operation Prosperity Guardian, also known as the new Combined Task Force 153.

Goldman Sachs analysts said that the disruption to energy flows in the Red Sea is unlikely to have large effects on crude and liquefied natural gas (LNG) prices as vessels can be redirected.