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Oil prices fell on Wednesday as a stronger dollar curbed demand for crude denominated in the US currency, but increasing risks of supply disruptions amid the raging conflict in the Red Sea limited losses.
Brent crude futures fell 36 cents, or 0.5 percent, to $77.93 per barrel by 0215 GMT. US West Texas Intermediate crude futures fell 43 cents, or 0.59 percent, to $71.97 per barrel.
Brent crude rose slightly on Tuesday while West Texas Intermediate crude fell, but the ongoing conflict in the Red Sea has raised concerns that tankers will be forced to change course to avoid the region, increasing costs and the amount of time needed for delivery.
US dollar index futures hovered near a one-month high on Wednesday after comments from Federal Reserve officials opposing expectations of a significant interest rate cut. The rise in the dollar reduces demand for dollar-denominated oil for buyers who pay in other currencies.
On Tuesday, the United States launched new strikes on the Yemeni Houthi group allied with Iran, after a Houthi missile targeted a Greek ship in the Red Sea.
The major British oil company Shell suspended shipments through the Red Sea after the start of the American and British strikes, but the American producer Chevron maintained its routes in the Red Sea.
