Oil Up Amid Ongoing Red Sea Tensions
Date
12/20/2023 12:27:30 AM
(MENAFN- AzerNews) Oil prices continued to increase Tuesday as attacks on naval and
commercial ships in the Red Sea have raised fears of possible
supply route disruptions, Azernews reports, citing
Anadolu Agency.
International benchmark crude brent traded at $78.02 per barrel
at 10.08 a.m. local time (0708GMT), a 0.09% increase from the
closing price of $77.95 a barrel in the previous trading session on
Monday. The American benchmark, West Texas Intermediate (WTI),
traded at $72.69 per barrel.
Houthi rebels in Yemen, located at the Red Sea's southern mouth,
said last month that they would target any Israeli-flagged ships
making their way through nearby waters. The announcement on Nov. 19
came as Israeli attacks continued to pummel the blockaded Gaza
Strip.
Yahya Saree, the group's spokesman, stressed on X that the
Houthis would continue targeting all ships sailing in the Red Sea
and the Arabian Sea and heading to Israel unless food and medicine
are allowed to Palestinians in the Gaza Strip.
As a result of the attacks, many shipping companies have decided
to halt their voyages in the Red Sea.
Ships passing through the Bab al-Mandeb Strait have had to
change course due to rising tensions in the Red Sea, which puts
pressure on oil markets. The strait in question is one of the most
important routes in the world for global seaborne commodity
shipments.
Egypt's Suez Canal Authority reported that 55 ships had been
redirected to the Cape of Good Hope at the southern tip of Africa
instead of the Bab al-Mandeb Strait since Nov. 19. If the tension
continues, more ships are expected to change their route, which
could disrupt oil supply.
Experts suggest that potential risks caused by supply
disruptions and conflicts in the Middle East may cause serious
fluctuations in oil markets.
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