Brent Crude Climbs as Conflicts Intensify
FxNews – On Monday, Brent crude oil prices rose, approaching $79 per barrel. This marks the third consecutive session of climbing prices. The increase is primarily due to recent military actions in the Red Sea region. US and British forces have been carrying out air and sea strikes. These actions aim to halt the Houthi rebels in Yemen from attacking maritime vessels.
The conflict has raised concerns about potential disruptions in the oil supply. Following the strikes, several tankers changed their usual routes this past Friday. This rerouting indicates the growing apprehension in the shipping industry. Additionally, the Houthi militia issued a warning on Sunday. They promised a “strong and effective response” to the US, escalating tensions further.
The situation in Libya adds to the complexity of the oil market. Local protesters intend to close down two more oil and gas facilities. This threat comes after the recent shutdown of the Sharara oil field last week. The closure of Sharara alone has already reduced the oil market by 300,000 barrels per day.
Moreover, oil production in non-OPEC countries, particularly the United States, is rising. However, this increase in production does not alleviate the market’s pressures. Significant uncertainty remains regarding oil demand, especially from China, the world’s top crude importer. These factors collectively continue to exert influence on the global oil prices.