Oil prices continued their most significant weekly increase in two months, driven higher by new attacks in the Red Sea that led numerous ships to choose longer, safer routes.
The international benchmark, Brent crude, saw a 1% rise, trading above $80 per barrel, marking its second consecutive weekly gain following a series of seven weekly drops. Meanwhile, the US benchmark, West Texas Intermediate, climbed 1.2%, surpassing $74 per barrel.
Shipping costs have surged due to an increase in vessels opting for longer, more expensive routes, primarily around Africa’s southern coast, to bypass the risks associated with navigating through the Suez Canal and the Red Sea.
This shift in maritime routes is a response to the Iran-supported Houthi rebels in Yemen, who have been attacking various types of ships, including oil tankers and container vessels.
In related news, Angola declared on Thursday its decision to exit the OPEC oil organization, reducing the membership of the cartel to 12 countries.
