(News Bulletin 247) – Oil prices accelerated upwards this Monday as several maritime carriers announced they would interrupt all transit, after attacks on ships in the Red Sea. Russia’s decision to further reduce its exports is also fueling the rise in oil prices.

After suffering the blow last week with prices at their lowest since June, oil prices are heading back up this Monday. The February contract for North Sea Brent jumped 2.9% to $78.74 per barrel, while the January contract for WTI listed in New York rose 2.9% to $73.86 per barrel. .

This rebound should be put into perspective with the increase in attacks on ships in the Red Sea in recent weeks by Yemen’s Houthi rebels. Enough to force shipowners and other oil companies to bypass this strategic trade route for world trade.

On Monday, the British giant BP announced that it would suspend all transit in the Red Sea because of these attacks. “Given the deterioration of the security situation for maritime transport in the Red Sea, BP has decided to temporarily suspend all transits via the Red Sea,” the group said in a statement sent to AFP.

A blocked sea highway

Announcements of this type have multiplied since Friday. Shipping giant Maersk has asked its ships to stop crossing the Red Sea until further notice, following an attack on one of its vessels. Switzerland’s MSC, the world’s largest container shipping company, also decided on Friday to stop using the Suez Canal following an attack on the MSC Palatium III.

The French company CMA CGM followed suit the next day and also made the decision to bypass this area, which is now at risk for its ships.

“The Red Sea is a “motorway of the sea” linking the Mediterranean to the Indian Ocean, and therefore Europe to Asia. Around 20,000 ships pass through the Suez Canal each year, the gateway to and exit from ships passing through the Red Sea”, recalls AFP.

“Bad weather in Russia played a role in the stronger opening this morning, as did the Houthi attack on shipping near Yemen,” IG analyst Tony Sycamore was quoted as saying by Reuters.

Russia scales back further

Indeed, Russia’s decision to tighten the screw on its exports is helping to fuel the rebound in oil prices. Russia said on Sunday it would step up cuts to oil exports in December, potentially by 50,000 barrels per day or more, the agency reports. “The decision comes after Moscow suspended around two-thirds of loadings of its main export product, Ural crude, at ports due to a storm and scheduled maintenance on Friday,” Reuters said.

Oil stocks are also accelerating upwards, and benefiting from the sharp rebound in black gold prices. In Paris, Totalenergies increased by 1.4%, Vallourec rebounded by 4% while Technip Energies gained 3.1% less than an hour from the close.