Based on World Bank data, Brent and West Texas Intermediate (WTI) crude oil prices edged up at the beginning of this year.
In February 2024, the average Brent crude oil price reached US$83.76 per barrel, a 4.4% increase month-on-month (mom), and 1.3% higher year-on-year (yoy).
During the same period, the WTI crude oil price reached US$76.70 per barrel, up 3.8% month-on-month (mom), but still 0.2% lower year-on-year (yoy).
According to the United States Energy Information Administration (EIA), global oil prices rose in early 2024 due to attacks by the Yemeni Houthi militant group on oil tankers traversing the Red Sea.
As a result, several vessels were forced to take alternative routes, which are longer and more costly.
The EIA also assessed that crude oil prices may only start to decline from the second quarter of 2024, although risks remain.
"We expect price declines to emerge in the second quarter of 2024, as global oil inventories generally increase," the EIA stated in its February 2024 Short-Term Energy Outlook report.
"However, the risk of continued supply disruptions in the Middle East could potentially lead to crude oil prices higher than our forecast," they added.