Oil futures contracts closed higher this Monday the 18th, supported by tensions in the Red Sea that threaten to limit global supply of the commodity by disrupting oil tanker traffic in the region. Tensions in the region also raise the geopolitical risks of an expansion of the war in Gaza, with the possibility that major oilproducing countries will become involved.
On the New York Mercantile Exchange, WTI closed February up 1.44% ($1.04) at $72.82 a barrel. On the Intercontinental Exchange (ICE), Brent rose 1.83% ($1.40) to $77.95 a barrel in February.
The Red Sea recorded new attacks on ships claimed by the Houthis this Monday. The armed group, which controls much of Yemen, has said its forces will guarantee the safety of all ships heading to ports in the region and around the world, except those of Israel.
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The spokesman for the militia's military wing, Yahya Sare'e, said that the Houthi naval forces had carried out a specific military operation against two ships linked to the “Zionist entity.” The first was the Norwegian oil tanker “Swan Atlantic” and the other was the ship “MSC Clara”, which transported containers.
Subsequently, some oil and maritime transport companies announced changes in shipping routes away from the Red Sea. This was the case, for example, with the Norwegian energy company Equinor and the British oil company BP.
For analyst Isabela Garcia of StoneX, these events are the reason for the increase in oil prices this Monday.
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“This represents the first real threat to the flow of goods since the conflict in Gaza began in October. There were previous fears about the Strait of Hormuz that ultimately did not materialize. Now there is this issue around the Red Sea which not only impacts the physical oil market but also creates geopolitical uncertainty,” she commented.