Jakarta –
World oil prices rose 2% in trading last Tuesday, this was the highest increase in a month. The main factor triggering the increase in world oil prices was the heated situation in the Red Sea after the Houthi group in Yemen attacked several commercial ships.
Reporting from Reuters, Wednesday (27/12/2023), the price of Brent crude oil futures closed 2.5%, higher at US$ 81.07 or around Rp. 1.25 million per barrel (exchange rate Rp. 15,450). US West Texas Intermediate (WTI) crude oil also rose 2.7%, to US$ 75.57 or around Rp. 1.16 million per barrel.
Last week, oil prices rose around 3% after Houthi attacks on commercial vessels said to be supporting violence in Gaza. This raises investor concerns.
“There’s a lot of geopolitical tension right now in the Middle East… and this is raising concerns about the security of transit of oil and other goods,” said John Kilduff, partner at Again Capital LLC.
Yemen’s Iran-backed Houthi militia claimed responsibility for Tuesday’s missile attack on a container ship in the Red Sea as well as an attempt to attack Israel with drones.
Despite concerns about the Middle East and changes in ship routes, world oil supplies have not actually been affected. Some shipping companies have stopped sending ships through the Red Sea and are charging extra fees to reroute ships.
Please note, the Red Sea is connected to the Suez Canal, the main shipping lane used for around 12% of global trade.
Even so, logistics giant Maersk on Sunday announced the resumption of shipping routes through the Red Sea. On the other hand, France’s CMA CGM has also begun to increase the number of ships traveling through the Suez Canal, thereby alleviating concerns to some extent.
(hal/rrd)
2023-12-27 00:40:01
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