Oil prices stabilize after rising due to Red Sea concerns

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Oil prices stabilize after rising due to Red Sea concerns

Tuesday saw a stabilization of oil prices as investors kept an eye on the effects of ship assaults in the Red Sea, which hampered maritime traffic and caused shipping firms to reroute their fleets.

According to John Rong Yip, market strategist at IG in Singapore, “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 reflected in oil prices.” In the meeting today.

On Monday, there was a more than 1 percent increase in the two crude oil standards as a result of concerns that shipping companies would move their ships out of the Red Sea.

British Petroleum, a significant oil business, discontinued… According to the oil tanker firm Front Line, all shipping activities are now conducted via the Red Sea. Its ships won’t be using the waterway on Monday, a sign that the problem is spreading to encompass supplies of electricity.

The Suez Canal, the shortest maritime route between Europe and Asia, is traversed by 15% of all marine traffic worldwide.

By 9:05 GMT, Brent oil futures had increased by 12 cents to $78.09 per barrel.

At $72.64 a barrel, US West Texas Intermediate oil futures dropped 18 cents.