Oil stabilizes as investors focus on Red Sea attacks

Oil prices stabilized on Tuesday as investors monitored the impact on oil supplies after attacks by the Yemeni Houthis allied with Iran on ships in the Red Sea, which disrupted maritime trade and forced companies to change the routing of ships.

According to Reuters, Brent crude futures rose six cents to $78.01 per barrel by 0726 GMT. US West Texas Intermediate crude futures for the nearest month, which expire on Tuesday, fell 18 cents to $72.29 per barrel.

The most active second-month contract fell 10 cents, or 0.1 percent, to $72.72.

“Given the quick collective response from several countries to mitigate the attacks, this may not provide much conviction that the unrest may be long-lasting, which has led to some reservations that have been reflected in oil prices,” said John Rong Yip, market strategist at IG in Singapore. In today’s session.”

The two crude oil standards rose more than 1% on Monday due to fears that shipping companies will divert ships away from the Red Sea.

The major oil company (BP) temporarily suspended all transportation operations through the Red Sea, and the oil tanker group (Front Line) said on Monday that its ships would avoid passing through the waterway, in an indication that the crisis is expanding to include energy shipments.

About 15% of global shipping traffic passes through the Suez Canal, which provides the shortest shipping route between Europe and Asia.

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