Oil Prices Surge 1% Following Houthi Attack on Fuel Tanker in the Red Sea
Oil prices leapt by one percent on Monday amid growing concern over fuel supply disruptions following a missile attack by Houthi rebels on a fuel tanker managed by commodity trading firm Trafigura in the Red Sea.
The attack occurs against the backdrop of anticipated declines in Russia's exports of refined oil products as many refineries continue repairs after suffering drone strikes.
Brent crude futures rose by 83 cents to $84.38 a barrel by 23:41 GMT after reaching a session high of $84.80. U.S. West Texas Intermediate crude also climbed 78 cents to stand at $78.79 per barrel.
On Saturday, Trafigura announced they were assessing security risks before proceeding with new voyages in the Red Sea, following a fire on one of its tankers attacked by the Yemeni Houthi group the previous day, which was eventually extinguished by firefighters.
Analysts at ANZ Bank commented in a note, "Supply disruptions had been minimal, but the situation shifted on Friday after a rocket struck a tanker operating on behalf of Trafigura off the Yemeni coast."
They added, "With oil tankers linked to the United States and United Kingdom currently at risk of attack, the market is likely to reprice considering the risks related to supply disruptions."
Both benchmark crudes increased for the second consecutive week and settled at their highest levels in about two months on Friday, buoyed by supply concerns emanating from the Middle East and Russia. Meanwhile, indicators of Chinese economic stimulus coupled with positive U.S. economic growth bolstered demand expectations.
Brent crude futures rose by 83 cents to $84.38 a barrel by 23:41 GMT after reaching a session high of $84.80. U.S. West Texas Intermediate crude also climbed 78 cents to stand at $78.79 per barrel.
On Saturday, Trafigura announced they were assessing security risks before proceeding with new voyages in the Red Sea, following a fire on one of its tankers attacked by the Yemeni Houthi group the previous day, which was eventually extinguished by firefighters.
Analysts at ANZ Bank commented in a note, "Supply disruptions had been minimal, but the situation shifted on Friday after a rocket struck a tanker operating on behalf of Trafigura off the Yemeni coast."
They added, "With oil tankers linked to the United States and United Kingdom currently at risk of attack, the market is likely to reprice considering the risks related to supply disruptions."
Both benchmark crudes increased for the second consecutive week and settled at their highest levels in about two months on Friday, buoyed by supply concerns emanating from the Middle East and Russia. Meanwhile, indicators of Chinese economic stimulus coupled with positive U.S. economic growth bolstered demand expectations.
