Overview

• Oil prices fluctuated due to a mix of economic concerns and geopolitical tensions in the Middle East, particularly in the Red Sea region.
• The ongoing conflict in the Middle East has led to diversions of oil tankers, increasing shipping costs and time, but has not directly impacted oil production.
• Extreme cold weather in the U.S. has curbed oil production, with North Dakota's output falling by 400,000 to 425,000 barrels per day.
• Yemen's Houthi movement has expanded its targets in the Red Sea to include U.S. ships, leading to more tanker diversions.
• Despite the rising conflict in the Middle East, the lack of direct impact on oil production has limited gains in oil prices.