Oil prices fall a further 1%

The API crude build suggests that the US is actively working to offset any abrupt surge in demand by consistently increasing oil production.

By Nadia Elbilassy | @Nadia Elbilassy | 28 December 2023

Market close
  • Oil Prices fell 1% due to a surge in U.S. oil stockpiles, overshadowing Red Sea shipping concerns.

  • Futures showed little change, consolidating as the year-end nears. Dow slightly down, and the Nasdaq 100 posted a 0.3% gain. All three indices closed positively in the previous session.

  • Apple's stock rose after a U.S. court temporarily halted a ban on its smartwatch sales, part of a patent dispute with Masimo.

On the Market Watch!

Oil prices

Oil prices fell 1% extending declines from yesterday’s 2% drop as U.S. stockpile numbers continue to increase as reported by the American Petroleum Institute. The latest figures revealed a build of 1.837 million barrels, compared to 0.939 million barrels the previous week, indicating a heightened pace of crude oil extraction in the US. The data overshadowed shipping disruptions along the Red Sea route, despite lingering tensions in the Middle East.

Additionally, major shipping companies have reported to have resumed operations in the Red Sea easing concerns and further pushing prices lower. Brent crude was last seen near $78.66 while WTI traded near $73.24.

Denmark's Maersk, a major shipping company, has decided to channel nearly all its container vessels traveling between Asia and Europe through the Suez Canal. As per a Reuters analysis of the company's schedule, only a small number of vessels will be diverted around the African route.

US Stocks

U.S. stock futures were little changed, indicating a consolidation as the robust year on Wall Street nears its end. The Dow futures contract declined 25 points, or 0.1%, while S&P 500 futures modestly rose by 6 points, or 0.1%. And the Nasdaq 100 futures saw a gain of 55 points, or 0.3%.

All three major indices had a positive performance overnight closing Wednesday’s session in the green territory, with the Dow Jones rising the most to 37,689 another all-time high.

In a related development, Apple's stock saw a slight increase following a temporary halt by a US appeals court on a government commission's import ban targeting sales of the tech giant's leading smartwatches. Amid an ongoing patent dispute with Masimo regarding medical monitoring technology.