2024-01-13 07:42:16
Oil prices fell over the past week, although they rose on Friday at settlement, with an increasing number of oil tankers diverting from the Red Sea following air and sea strikes launched by the United States and Britain on Yemen.
Price movements
On a weekly basis, Brent crude fell by 0.5 percent, while US West Texas Intermediate fell by 1.1 percent.
Brent crude futures rose 88 cents, or 1.1 percent, to $78.29 per barrel upon settlement, Friday.
The highest level during the session exceeded three dollars, with the barrel recording more than $80, the highest level this year.
US West Texas Intermediate crude rose 66 cents, or 0.9 percent, to $72.68, reversing gains it had achieved following touching the highest level in 2024 at $75.25.
Analysts and experts in the oil sector pointed out that despite expectations that diversion of ships would raise the cost of shipping and increase the time taken to transport oil, supplies have not yet been affected, which has wiped out some of the previous gains achieved by prices.
The oil tanker companies Stena Bulk, Hafnia, and Torm said that they had all decided to stop all ships heading to the Red Sea.
For his part, Osama Rabie, head of the Egyptian Suez Canal Authority, said that traffic in the canal is moving as usual in both directions, and that there is no truth to what was reported regarding the cessation of navigation due to developments in the Red Sea.
The US and British strikes come in response to Houthi attacks since October on commercial ships in the Red Sea.
The events fueled market concerns regarding the escalation in Gaza turning into a broader conflict in the Middle East, affecting oil supplies.
British maritime security company Ambrey said that the Houthis mistakenly targeted a tanker carrying Russian oil in a missile attack today off Yemen.
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