Oil prices surge due to concerns on shipping

Oil prices rose on Tuesday, building on gains from the previous day due to attacks on shipping in the Red Sea that have raised concerns about supply, as reported by Reuters.

Brent crude futures increased by 0.44 per cent to $82.89 a barrel, while US West Texas Intermediate crude futures (WTI) were up by 0.40 per cent to $77.89 a barrel.

The attacks by Iran-aligned Houthis have led to higher freight rates and shipping times. US President Joe Biden announced that Israel has agreed to halt military activities in Gaza for Ramadan, and there are indications of improved demand in China.

Additionally, Russian authorities announced a six-month ban on gasoline exports from March 1. The oil benchmarks settled more than one per cent higher on Monday, following declines of 2-3 per cent over the previous week.

The American Petroleum Institute’s (API) weekly data on US crude inventories is expected to be released later in the day, according to the statement.