Oil holds gains as red sea attacks cause panic among shippers ...
The information you requested is not available at this time, please check back again soon.
Elizabeth Low and Alex Longley, Bloomberg News
Scott Bauer warns that oil could slide toward US$60
VIDEO SIGN OUT
Oil traded near its highest close in more than two weeks as more companies shun the Red Sea after a spike in vessel attacks along the key shipping conduit.
Global benchmark Brent traded near US$78 a barrel, after rising 1.8 per cent Monday to its highest close since early December. Prices surged on Monday after BP Plc said it would pause all shipments through the waterway and Equinor ASA also said it's diverting vessels away.
The recent escalation in attacks by Iran-backed Houthi rebels in Yemen is the most tangible sign of disruption to energy flows since the Israel-Hamas war started on Oct. 7, leading the U.S. to announce a new maritime task force to protect commercial vessels. It has also helped fuel a rebound in oil prices since they slumped to a five-month low last week amid signs of rising production, especially in the U.S.
Disruption to major trading conduits tend to be short term, and it's likely the U.S. will take firmer military actions to counter these tensions, said John Driscoll, director and founder of Singapore-based consultant JTD Energy Services Pte Ltd. “The broader concerns are if Houthi bombings and the blockade will escalate tensions in the Mideast and whether Iran jumps into the fray,” he said.
About 8 per cent of the world's crude transits through the Suez Canal, putting pressure on tanker utilization if ships are forced to take the longer route around South Africa, Jefferies analysts said in a note.
Prices:
Brent for February settlement fell 0.3 per cent to US$77.75 a barrel at 9:57 a.m. in London. WTI for January delivery, which expires Tuesday, was down 0.4 per cent at US$72.20 a barrel. The more active February contract edged lower to US$72.63.
