Oil Rises on Red Sea Jitters, Ample Supply Weighs
12.18.2023 By Tank Terminals - NEWS

December 18, 2023 [Reuters]- Oil rose on Monday as attacks by the Houthis on ships in the Red Sea raised concerns of oil supply disruptions, although scepticism around Russia’s plan to cut exports in December limited gains.

 

BP has temporarily paused all transits through the Red Sea, it said on Monday, following attacks over the weekend by Houthi forces which control most of Yemen. Other shipping firms said over the weekend that they would avoid the Suez Canal.

Brent crude futures were up 62 cents, or 0.8%, to $77.17 a barrel by 1150 GMT, while U.S. West Texas Intermediate crude rose 47 cents, or 0.7%, to $71.90.

Both crude benchmarks posted small gains last week, following seven weeks of decline, after a U.S. Federal Reserve meeting last week raised hopes that interest rate hikes are over and cuts are on their way.

“The rise in geopolitical risk premium, which has come in the form of regular hostilities towards commercial vessels in the Red Sea by Iran-backed Houthi rebels plays its indisputable part in oil’s resurrection,” said Tamas Varga of oil broker PVM. said Tamas Varga of oil broker PVM.

Also adding support, Russia said on Sunday it would deepen oil export cuts in December by potentially 50,000 barrels per day or more, earlier than promised, as the world’s biggest exporters try to support global oil prices.

This comes after Moscow suspended about two-thirds of loadings of its main export grade Urals crude from ports due to a storm and scheduled maintenance on Friday.

Still, PVM’s Varga was sceptical of the extent to which Russia will make voluntary output cuts.

“In reality it is just re-packaging weather-related halts in exports,” he said.

 

Pro Trial: Access 12,600 Tank Terminal and Production Facilities

12,600 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

UAE Invests Billions in AI to Diversify Economy Beyond Oil
11.13.2024 - NEWS
November 13, 2024 [Oil Price]- The United Arab Emirates’ state-owned energy giant Abu Dhabi Nat... Read More
Gulf Energy Transition: Assessing Saudi and Emirati Goals
11.13.2024 - NEWS
November 13, 2024 [The Washington Institute]- On October 29, during Saudi Arabia’s annual Futur... Read More
How will The Energy Sector Fare Under Donald Trump?
11.13.2024 - NEWS
November 13, 2024 [Investing Daily]- The energy sector experienced a notable boost following Dona... Read More
PNOC, Pertamina Partner on LNG Infrastructure, Supply Chain
11.13.2024 - NEWS
November 13, 2024 [Manila Bulletin]- State-run Philippine National Oil Company (PNOC) has signed ... Read More