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bullrider_21 commented on a stock · Jan 14 14:46

$5WH.SG$$T13.SG$$NO4.SG$$CLmain.US$ Oil rose 1% on Fri as an...

Oil rose 1% on Fri as an increasing number of oil tankers diverted course from the Red Sea following overnight air and sea strikes by the U.S. and Britain on Houthi targets in Yemen after attacks on shipping by the Iran-backed group.
Brent crude futures settled 1.1% higher at USD78.29. The session high was up over USD3 to more than USD80, its highest this year. WTI crude rose 0.9% to USD72.68, paring gains after touching a 2024 high of USD75.25.
While the diversions were expected to push up the cost and time it take to transport oil, supplies have not yet been impacted, analysts and industry experts noted, easing some of the earlier gains in prices.
For the week, Brent was down 0.5% and WTI 1.1% lower. Earlier in the week, sharp price cuts by top exporter Saudi Arabia and a surprise build in U.S. crude stockpiles spurred supply worries.
The U.S. and UK strikes come in retaliation for Houthi attacks since Oct on commercial vessels in the Red Sea in a show of support for Palestinian militant group Hamas in its fight against Israel.
The escalation has fed worries the Israel-Hamas war could widen into a broader conflict in the Middle East, disrupting oil supplies. Iran seized a tanker on Thu carrying Iraqi crude south of the strait destined for Turkey.
Houthi militants also mistakenly targeted a tanker carrying Russian oil in a missile attack on Fri off Yemen, British maritime security firm Ambrey said.
Diversion of tankers around South Africa will also push up freight rates as ships take longer routes. The Red Sea, a key route between Europe and Asia, accounts for about 15% of the world's shipping traffic.
The U.S. expects Houthis to attempt some sort of retaliation as U.S. and Britain struck just under 30 different locations in Yemen, a senior U.S. military official said.
A Houthi spokesperson said the group would continue to target shipping heading toward Israel. Iran warned that the attack on Houthis will fuel "insecurity and instability" in the region, according to Iranian state media.
Saudi Arabia called for restraint and "avoiding escalation" and said it was monitoring the situation with great concern.
Also supporting oil prices, China bought record levels of crude oil in 2023 as demand recovered form a pandemic- induced slump despite economic headwinds in the world's biggest energy consumer.
The premium of the first-month Brent contract to the six-month contract rose to as much as USD2.09 on Fri, the highest since early Nov, in a sign that markets perceive tighter supply for prompt delivery.
In Libya, the spokesperson for protesters who have threatened to shut down two oil and gas facilities in Tripoli said they have decided to extend Fri's, : deadline for closing the facilities by 24 hours as there are negotiations with mediators.
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