ALBAWABA – Oil prices saw a 1 percent increase due to worries about supply issues following a Houthi missile strike on an oil ship owned by Trafigura in the Red Sea. Additionally, Russian exports of refined goods are expected to decline as numerous facilities are undergoing repairs following drone strikes due to the Russia–-Ukraine war.
Yemen's Houthi group has announced earlier their plans to limit vessels crossing the Red Sea by attacking ships affiliated with or going to Israel in response to the deadly attacks against Gazan civilians, which prompted multiple countries including the US and UK to take military action against Houthi positions in Yemen.
Brent oil futures had risen 83 cents to $84.38 per barrel, from a session high of $84.80. A barrel of U.S. West Texas Intermediate oil now costs $78.79, up 78 cents, after the mentioned ship’s fire was doused, commodities trader Trafigura said it was evaluating the security risks of more trips across the Red Sea.
Fire is down - crude oil prices up Trafigura well known for its dark business activities in many commodities markets, by profiting on sanctions using it closed to public corporate structure. Nobody knows who real owners are!
— NoBrainWasher (@sergio_cge) January 29, 2024
How to generate more billions on sanctions? pic.twitter.com/HSCBymKX0J
This news comes as an OPEC+ meeting is expected in the following days, the meeting is anticipated to discuss production levels and review last year’s performance, while delegates from OPEC+ have reported earlier that no plans are on the table regarding oil output policy.
Russia on the other hand, is keeping its earlier promise to OPEC+ and allies, to reduce its oil outputs all the way down to 500,000 a barrel per day, which is made up of 300,000 barrels of Crude Oil and 200,000 barrels of Refined Oil, this policy prompted Angola to withdraw from OPEC+ earlier on Dec. 2023, in the same time that countries like the US, which is outside of OPEC+ collation, is pumping higher production to meet demand.
