Attacks on Red Sea tankers sent oil prices up more than 3%

Oil prices extended their rally on Monday, rising more than 3%, as Yemen’s Houthi rebel groups continued attacks on ships in the Red Sea, disrupting maritime trade and raising concerns about supply disruptions. On Monday, a Norwegian ship was attacked in the Red Sea, and oil giant BP said it had suspended all shipping through the waters. Other shipping lines also said over the weekend that they would avoid the route. Tamas Varga, an analyst at oil brokerage PVM, said that the rise in geopolitical risk premiums has played an indisputable role in the recovery of oil prices. However, Varga added that ample oil supplies limited the rise in oil prices on Monday. The crude oil for spot delivery in the United States and Burenos Aires is trading at a lower price than the crude oil for later delivery, suggesting that the spot market is well supplied.