Oil prices rose in early trading Tuesday, continuing the gains they achieved in the previous session, as attacks launched by the Iran-aligned Houthis in Yemen on ships in the Red Sea disrupted maritime trade and forced companies to change the course of ships.
Price action
Brent crude futures rose 17 cents, or 0.2 percent, to $78.12 per barrel by 0112 GMT. US West Texas Intermediate crude futures for the nearest month, which expire on Tuesday, rose 14 cents to $72.61 per barrel. The most active second-month contract rose nine cents, or 0.1 percent, to $72.91.
The two crude oil standards rose more than 1 percent on Monday due to fears that shipping companies will divert ships away from the Red Sea.
The major oil company BP (BP) temporarily suspended all transportation operations through the Red Sea, and the oil tanker group (Front Line) said yesterday, Monday, that its ships will avoid passing through the waterway, in an indication that the crisis is expanding to include energy shipments.
About 15 percent of global shipping traffic passes through the Suez Canal, providing the shortest shipping route between Europe and Asia.
The attacks on the ships prompted the United States and its allies to discuss forming a task force to protect the Red Sea routes, a move that Tehran, an arch enemy of the United States and Israel, warned would be a mistake.
