Jan 3 Reuters Oil prices were little changed in Asian trade on Wednesday after sharp moves earlier in the week, as markets weighed concerns about the U.S. economy against potential supply disruptions from ongoing tensions in the Red Sea.

Brent crude fell 1 cent, or 0.01, to 75.88 a barrel by 0733 GMT, while U.S. West Texas Intermediate crude futures slipped 8 cents, or 0.11, to 70.3 a barrel.

Oil prices had climbed around 2 earlier in the week following attacks on vessels in the Red Sea by Houthi rebels over the weekend and the reported arrival of an Iranian warship on Monday. A wider conflict could close crucial waterways for oil transportation and disrupt trade flows.

However, the market fell in the previous session as optimism about early and aggressive U.S. interest rate cuts ebbed ahead of the release of Federal Reserve meeting minutes and jobs data.

The geopolitical risks are not being priced in at the moment on assumption that a regional flare up will continue to be avoided, said Suvro Sarkar, energy sector team lead at DBS Bank.

He said markets were expected to be choppy in the near term but muted overall in the first quarter compared with the second half of last year.

Expectations of ample oil supply in the first half of 2024 have kept a lid on prices ahead of OPEC plans to hold a meeting of its Joint Ministerial Monitoring Committee JMMC in early February. An exact date has not been decided, three sources from the alliance said.

OANDA39;s senior market…