2023.12.2908:10:00UTC+00Oil Rebounds But Set For Annual Loss

Oil prices rebounded on Friday, after having fallen nearly 3 percent the previous day on demand worries and easing concerns about supply.

Benchmark Brent crude futures jumped 0.8 percent to $77.73 a barrel, while WTI crude futures were up 0.6 percent at $72.24.

Oil prices remain on track for their biggest annual drop since 2020 despite the outbreak of Israel-Hamas war and OPEC+ production cuts.

With U.S. production running at a record clip, traders believe that global crude supplies may still eclipse demand in the quarters to come.

WTI crude lost about 10 percent this year, while Brent contracts have fallen by about 9 percent.

Geopolitical tensions remained on investors' radar today after the U.S. said that it has shot down a drone and an anti-ship ballistic missile fired by Houthi.

"The USS Mason (DDG 87) shot down one drone and one anti-ship ballistic missile in the Southern Red Sea that were fired by the Houthi," according to the U.S. Central Command (CENTCOM).

There was no damage to any of the 18 ships in the area or reported injuries.

The Houthi are targeting Israel and Israeli-linked vessels to push for a stop to the offensive in the Gaza Strip.