Houthi Attacks in The Red Sea Make Oil Prices Soar Sharply

Mytips.id, NEWS - The oil price has risen by 1 percent due to concerns over supply issues following Houthi missile attacks on a Trafigura oil tanker in the Red Sea. 

Additionally, Russia's processed goods exports are expected to decline as many facilities undergo repairs following drone attacks resulting from the Russia-Ukraine conflict. 

The Yemen-based Houthi group had previously announced their plan to restrict ships crossing the Red Sea by targeting vessels affiliated with or heading to Israel in response to deadly attacks on Gaza civilians.

This has prompted many countries, including the US and UK, to take military action against the Houthi position in Yemen. Brent crude futures have increased by 83 cents to $84.38 per barrel, from a session high of $84.80. 

Meanwhile, one barrel of US West Texas Intermediate oil is now priced at $78.79, up by 78 cents, after the fire on the oil tanker was successfully extinguished. 

Commodity trader Trafigura has stated that they are evaluating the security risks of further voyages across the Red Sea. This news comes as the OPEC+ meeting is expected to be held in the upcoming days, where production levels and last year's performance will be discussed. 

However, OPEC+ delegates have previously reported that there are no plans regarding oil production policies.

 On the other hand, Russia has fulfilled its earlier promise to OPEC+ and its allies, reducing its oil production by 500,000 barrels per day, consisting of 300,000 barrels of crude oil and 200,000 barrels of condensate. 

This policy has prompted Angola to withdraw from OPEC+ earlier in December 2023, at the same time as countries like the United States, which are outside the OPEC+ group, increase production to meet demand.