Source: Sky News
Oil prices rose on Tuesday, continuing their gains for the second session in a row, after attacks launched by the Yemeni Houthi group on ships in the Red Sea disrupted maritime trade and forced companies to change the course of their ships.
On Monday, the price of crude oil rose by about two percent, after a Norwegian-owned ship was attacked and British Petroleum announced the suspension of all transportation operations through the Red Sea, raising concerns about supply disruptions.
About 12 percent of global shipping traffic passes through the Red Sea and then to the Suez Canal.
Peter Sand, senior analyst at Zeneta, said: “Ships are now being rerouted via the Cape of Good Hope, which will not only increase sailing time by about 10 days, but will incur costs of around $1 million additional in fuel for each round trip between the Far East and Northern Europe.” .
Attacks on shipping have increased the risk premium, but other analysts noted that these incidents are unlikely to impact supply.
On Tuesday, the United States announced the formation of a task force to protect trade in the Red Sea from attacks launched by the Houthis, which disrupted maritime trade and forced companies to change the course of ships.
Price movements
By 16:0 GMT, Brent crude rose $1.30, or 1.69 percent, to $79.27 per barrel.
The price of US West Texas Intermediate crude rose $1.74 to $74.07.
2023-12-20 00:03:33
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