Oil held its largest gain in more than a week on rising tensions in the Middle East, with a fresh attack on shipping in the Red Sea prompting vessels to avoid the key shipping route.
West Texas Intermediate traded above $75 a barrel after rising by 2.7% on Tuesday, with global benchmark Brent near $81. The vessel MSC United VIII was attacked while en route to Pakistan from Saudi Arabia, despite the US and a number of other nations formiing a maritime task force to deter such strikes.
The latest attack by Yemen-based Houthi militants, together with US strikes on targets in Iraq, are further signs that the Israel-Hamas war still risks expanding into a wider conflict that could destabilize the Middle East. Hamas is designated a terrorist organization by the US and the European Union.
Oil remains on course for the first annual decline since 2020, although the tensions have helped prices to rebound from lows hit earlier this month. There are widespread concerns about a glut next year despite fresh supply curbs from the Organization of Petroleum Exporting Countries and its allies.
WTI for February delivery fell 0.4% to $75.26 a barrel at 7:50 a.m. in Singapore. Brent for February settlement closed 2.5% higher at $81.07 a barrel on Tuesday.
Source: Bloomberg
