Tuesday, February 27, 2024

Oil rose nearly 1 percent on a decline in Russian exports and an increase in attacks in the Red Sea

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© Reuters. Oil pump cranes in Northern Germany. Image from Reuters archive.

SINGAPORE (Reuters) – Oil prices rose nearly 1 percent in early Asian trade on Monday, supported by a decline in exports from Russia and fears of increased supply disruptions from Houthi attacks on ships in the Red Sea.

By 0037 GMT, crude futures were up 69 cents, or 0.9 percent, at $77.24 a barrel, while US West Texas Intermediate crude was up 65 cents, or 0.9 percent, at $72.08 a barrel.

“Bad weather in Russia contributed to the strong opening (price rise) this morning and Houthi attacks on ships near Yemen,” said Tony Sycamore, market analyst at IG Markets.

Russia said on Sunday it would cut exports by 50,000 barrels a day or more in December, more than promised, at a time when the world’s two biggest oil exporters are trying to support global prices.

Over the weekend, shipping companies including MSC and AP Moller-Maersk, the world’s biggest container shipping lines, said they would avoid transiting through the Suez Canal as Yemen’s Houthis intensify attacks on commercial ships in the Red Sea. .

Bab al-Mandab is one of the world’s most important routes for the export of global goods by sea, especially fuel, from the Gulf to the Mediterranean via the Suez Canal or the nearby SUMED pipeline, in addition to eastward to Asia. including Russian oil.

Brent and West Texas Intermediate crude ended their longest streak of weekly declines in half a decade after the Federal Reserve (US central bank) meeting last week.

(Produced by Hasan Ammar for Arabian Bulletin)

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Nadia Barnett
Nadia Barnett
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