Oil Prices stays Unchanged among Geopolitcal tensions

Oil prices were little changed on Dec 26 as investors focused on geopolitical tensions in the Middle East and expectations that the Federal Reserve of the United States would soon begin cutting interest rates, boosting global economic growth and fuel demand.

Brent crude futures were down 26 cents, or 0.3%, to $79.13 a barrel by 0115 GMT, while West Texas Intermediate crude was up 3 cents to $73.59 a barrel.

Trade is light because some markets are still closed for the Boxing Day holiday.

Both benchmarks notched gains of about 3 per cent last week after Houthi attacks on ships disrupted global shipping and trade, adding to tensions in the Middle East as the Israel-Gaza conflict waged on.

Denmark's Maersk said on Sunday it was preparing to resume shipping operations in the Red Sea and the Gulf of Aden, citing the deployment of a U.S.-led military operation designed to ensure the safety of commerce in the area.

Shipping companies had suspended vessel passage through the Red Sea, which connects to the Suez Canal, which handles about 12% of world trade, and imposed surcharges for re-routing ships.

Separately, Iran denied a US claim that a drone launched from Iran struck a chemical tanker in the Indian Ocean on Monday.

The Liberian-flagged, Japanese-owned, and Dutch-operated Chem Pluto ship was hit 200 nautical miles (370 kilometres) off the coast of India, according to the Pentagon.