Oil prices almost unchanged amid stronger US dollar

Oil prices remained stable on Tuesday, with the US dollar reaching its highest in a month and concerns about the impact of Middle East tensions on energy supplies supported by the stronger dollar.

WTI crude futures settled at $72.40 a barrel, down 28 cents or 0.4% from Friday’s settlement. Brent Crude futures rose 14 cents, or 0.2%, from Monday’s settlement to $78.29 a barrel. The stronger dollar drew support from the US dollar’s one-month high as investors dialed back expectations of an interest rate cut by the Federal Reserve in March.

Forecasts for warm weather in major US production hubs later in January also weighed on prices. Oil prices were influenced by signs of escalating Middle East tensions, as the US military carried out a new strike in Yemen against four Houthi anti-ship ballistic missiles.

Oil prices are expected by some economists to hold at current levels and most of them do not expect a major impact on oil production from the Red Sea disruptions.