Oil wipes gains to close lower; Brent slips below $79

Oil drilling rigs

Oil erased the session's gains today, Jan. 17, as data showed a contraction in industrial activity in New York City. In addition, oil production in North Dakota was cut to half due to cold weather and the geopolitical tensions continued to affect the market sentiment.

Brent crude futures for March delivery settled at $78.29 per barrel, after touching $79.39 during trading.

WTI crude for February delivery fell by 0.4%, or 28 cents, to $72.40 a barrel, after touching $73.56 during the session.

Tanker tracking data collected by Bloomberg showed that the number of ships crossing the Bab al-Mandab Strait decreased by more than half Jan. 12 compared to the corresponding period of the previous year. However, 114 ships, including tankers of oil, goods and containers, are still passing through the Red Sea.

The Federal Reserve Bank of New York said that its Empire State business conditions index fell by 29.2 points to minus 43.7 points in the January reading, recording its lowest level since the peak of the epidemic in May of 2020. This compares with analysts’ expectations of a reading of minus 4 points.