Oil jumps over 2% to hit 1-month high on Red Sea attacks, US rate cut hopes; Brent over $80/bbl
last week's gains of about three per cent after Houthi attacks on ships disrupted global shipping and trade while the Israel-Hamas conflict shows no sign of easing. Brent crude futures were up by $1.79, or 2.3 per cent, at $80.86 a barrel and earlier reached $81.23, the highest since December 1. US West Texas Intermediate crude rose by $1.89, or 2.6 per cent, to $75.45, according to news agency Reuters.
Also Read: India's crude oil output down 0.4% to 2.4 MMT in November, imports decrease 2.3% YoY: PPAC Back home, on the Multi Commodity Exchange (MCX), crude oil futures due for a January 19 expiry, settled 2.53 per cent lower at ₹6,319 per bbl, having swung between ₹6,101 and ₹6,322 per bbl during the session, against a previous close of ₹6,163 per barrel. -Despite concern about the Middle East and the re-routing of ships, actual supply has not yet been affected. Maersk on Sunday announced the restart of shipping routes through the Red Sea, easing the concerns to some extent.
Analysts said that the lack of oil supply disruptions is offsetting the support to prices from ongoing geopolitical tensions in the Middle East. -Shipping companies had stopped sending vessels through the Red Sea and imposed surcharges for re-routing ships. The Red Sea connects with the Suez Canal, a major shipping route used for about 12 per cent of global trade.
Germany's Hapag-Lloyd will decide on Wednesday how it will proceed with its Red Sea routes after suspending shipments there, according to Reuters. -Two explosions in the Red Sea were reported by a vessel sailing off the coast of Yemen on Tuesday shortly after two unmanned aircraft were sighted. Oil also found support from expectations that the Fed will cut interest rates next year.
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