Crude Oil Hits 2-Month High Amid Red Sea Attack.
On Monday, WTI crude oil futures surged to around $79 per barrel, marking a two-month peak. This uptick was largely driven by heightened concerns over potential supply disruptions following the Houthi group's assault on a Transfigura-managed fuel tanker in the Red Sea.
The incident, involving a missile strike near Yemen's coast last Friday, has led Transfigura to reevaluate the safety of continuing shipments through the Red Sea. Additionally, there's an anticipated decline in Russian refined oil exports due to repairs at several refineries due to recent drone strikes. On the demand front, robust economic figures from the US and new financial measures in China are boosting oil consumption prospects in these significant markets. While OPEC and its allies plan to convene virtually on February 1, it's not anticipated that they will make early decisions regarding their output policies.