• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 7 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 days Does Toyota Know Something That We Don’t?
  • 1 day America should go after China but it should be done in a wise way.
  • 7 days World could get rid of Putin and Russia but nobody is bold enough
  • 9 days China is using Chinese Names of Cities on their Border with Russia.
  • 10 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 11 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 11 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 9 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 1 day How Far Have We Really Gotten With Alternative Energy
  • 10 days Putin and Xi Bet on the Global South
  • 10 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"

Oil Prices Hit Two-Week High on Red Sea Shipping Disruptions

Crude oil prices hit the highest in two weeks following BP’s announcement it will temporarily reroute its tankers away from the Red Sea amid intensifying attacks by the Yemeni Houthis on vessels in the area.

Brent crude gained 1.8% on Monday and earlier today topped $78 per barrel, while West Texas Intermediate topped $72 per barrel.

Despite price stabilization today, the potential risks caused by supply disruptions and the Middle East unrest could bring significant volatility to oil markets," CMC Markets analyst Tina Teng told Reuters.

BP announced it would halt shipments of oil and gas via the Red Sea on Monday, saying “In light of the deteriorating security situation for shipping in the Red Sea, BP has decided to temporarily pause all transits through the Red Sea,” and adding that “We will keep this precautionary pause under ongoing review, subject to circumstances as they evolve in the region.”

The move prompted an immediate response from the United States, which announced it was forming a coalition to step up patrols in the area, engaging the support of half a dozen NATO members including the UK and France, and Gulf ally Bahrain.

The Red Sea is a key route in global oil shipments leading to the Suez Canal that handles some 8% of global oil trade, Bloomberg noted in a report. It is the shortest trade route between Asia and Europe.

The report cited an energy analyst as saying the main thing to watch for now was whether the attacks would escalate further. “The broader concerns are if Houthi bombings and the blockade will escalate tensions in the Mideast and whether Iran jumps into the fray,” John Driscoll, JTD Energy Services founder and director, said.

Iran has warned an increased presence of Western Navies in the region would be a mistake, per a Reuters report from earlier today.

ADVERTISEMENT

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News