Record of Supply Concern as Oil price hike one percent on Asian trade

Oil prices jumped more than 1% in Asian trade on Monday, buoyed by lower Russian shipments and as Houthi attacks on ships in the Red Sea fanned concerns about oil supply interruptions.
Brent crude futures were up 32 cents, or 0.4%, to $76.87 per barrel by 0413 GMT, while West Texas Intermediate crude was up 34 cents, or 0.5%, to $71.77 per barrel.
“The bad weather in Russia has played a part in the stronger open this morning, as has the Houthi attack on ships close to Yemen,” analyst Tony Sycamore said.
As the world’s largest exporters attempt to boost global oil prices, Russia announced over the weekend that it would deepen oil export limits in December by possibly 50,000 barrels per day or more, earlier than promised.
This comes after a storm and planned maintenance on Friday caused Moscow to halt around two-thirds of the loading of its primary export-grade Urals oil from ports.
Shipping companies announced over the weekend that they will steer clear of the Suez Canal due to the Houthi terrorists in Yemen intensifying their attacks on commercial vessels in the Red Sea. These companies include the two largest container shipping lines in the world, MSC and A.P. Moller-Maersk.
One of the most significant shipping routes in the world for commodities by sea is Bab al-Mandab. These shipments primarily consist of fuel and crude oil from the Gulf that are travelling westward to the Mediterranean through the Suez Canal or the adjacent SUMED pipeline, as well as commodities that are travelling eastward to Asia, including Russian oil.
After a U.S. Federal Reserve meeting last week raised hopes that interest rate hikes are over and cutbacks are on the horizon, both Brent and WTI halted their longest stretch of weekly drops in half a decade with a slight gain.
The main U.S. storage hub, Cushing, Oklahoma, saw a spike in oil stocks last month after approaching operational lows. This was attributed to stronger Canadian crude flows and better pricing at the hub, which attracted barrels from the Permian area of Texas.
After eight weeks of increases, Cushing stockpiles have reached 30.8 million barrels due to the current influx of crude from both sites.

Source: allnewsng.com

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