WTI rises on Red Sea shipping threats

The US benchmark WTI oil prices rose over 1.25% on Monday, around $77.37 per barrel due to the ongoing Red Sea shipping threat and European diesel demand. The slump in US diesel exports to Europe was attributed to lower refinery output and tighter supplies in the US, with Europe’s US diesel imports nearly halving so far this month to 6.65 million barrels.

This slump is linked to Red Sea shipping disruptions as Yemen’s Iran-backed Houthis still represent a real threat. Europe’s tightening diesel supplies are partly due to disruptions in the Red Sea, giving the market another glimpse of the scale of potential impact for this crisis. Brent crude was trading at $82.68, up 1.30%, while WTI was trading at $77.72, up 1.61%. eventually Brent crude settled around $81.62 per barrel.

WTI oil rebounded from recent lows as traders focused on Houthis’ attacks on ships in the Middle East. Brent oil needs to climb above the $84.50 level to gain sustainable momentum.