The Brent futures contract has risen above the $78/bbl mark, trading at $78.60/bbl at 17:00 GMT (time of writing).
Crude strength came in the context of the Yemeni Houthi militant group’s attacks disrupting international trade. After a Norwegian vessel was attacked in the Red Sea today, BP decided to temporarily halt transit through the Red Sea. The company is joining other players such as Maersk Tankers, Moller-Maersk, Hapag-Lloyd, and MSC, all saying they would halt transit through the Suez Canal until security improves.
According to Reuters, Turkey has become one of the biggest buyers of Russian oil after the EU boycott of Moscow’s crude. This has been an advantage for Turkey as the current discount that Urals was said to have made Ankara save over $2bn. Saudi Arabia’s crude oil exports in October hit their highest levels in four months according to the Joint Organizations Data Initiative (JODI). Crude exports for the country rose by 9.6% to 6.30mbpd from September.
The front and 6-month Brent futures spreads are at -$0.16/bbl and -$0.02/bbl respectively.
