Oil costs set for weekly gain as Red Sea stress continues

Synopsis More maritime providers are preventing the Red Sea due to attacks on vessels performed by the Houthi militant group, which states it is reacting to Israel’s war in Gaza.AgenciesOil costs increased on Friday as stress continued the Middle East following Houthi attacks on ships in the Red Sea, although Angola’s choice to leave OPEC raised concerns over the group’s efficiency in supporting costs. Brent unrefined futures were up 92 cents, or 1.2%, to $80.31 a barrel at 1445 GMT. U.S. West Texas Intermediate (WTI) unrefined futures were up $1.02, or 1.4%, at $74.91 a barrel. Both Brent and WTI futures were on track for an over 4% week-on-week gain, buoyed by increasing geopolitical threats due to the Red Sea attacks and prospective interruptions to shipping operations. More maritime providers are preventing the Red Sea due to attacks on vessels performed by the Houthi militant group, which states it is reacting to Israel’s war in Gaza. And on Friday, significant carriers Maersk and CMA CGM stated they would enforce additional charges connected to re-routing ships. The attacks have actually triggered disturbances through the Suez Canal, which deals with about 12% of world trade. “Direct stops briefly to provide are not the only factor oil costs will be moved by the Red Sea scenario; freight rates and insurance coverage expenses are increasing and not even if of pseudo-war premiums
Learn more