Houthis Have Provided Assurances To China And Russia That Their Vessels Will Pass Safely Through Red Sea
Portfolio Pulse from Benzinga Newsdesk
Houthi officials have assured China and Russia that their vessels will be safe passing through the Red Sea, according to a senior Houthi official speaking to Reuters. This development could impact the global oil supply routes and market perceptions.
March 21, 2024 | 4:40 pm
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The assurance from Houthi officials to China and Russia about safe vessel passage through the Red Sea may influence global oil supply perceptions, potentially affecting USO's performance.
The Red Sea is a crucial route for global oil shipments. Any assurance of safety can reduce geopolitical risk premiums on oil prices, potentially leading to higher oil prices. As USO tracks the price of oil, positive developments that could lead to higher oil prices may positively impact USO's stock price in the short term.
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