Oil closes higher supply disruption concerns

Oil drilling rigs

Oil futures prices closed higher today, Dec. 18, amid increasing concerns about the disruption of supplies from the Middle East following the escalation of geopolitical tensions, which affected the movement of container shipping through the Bab al-Mandab Strait and the Suez Canal.

Brent crude futures for February delivery rose 1.85%, or $1.4, to close at $77.95 per barrel, after touching $79.51 during trading.

WTI crude for February delivery (the most active contract) increased by 1.45%, or $1.04, to $72.82 per barrel, after touching $74.61.

BP announced today that Britain had temporarily suspended its shipments via the Red Sea due to the tense security situation in the region. The Taiwanese shipping company Evergreen Line took a similar decision to prevent the passage of its ships and direct them towards nearby safe waters.

Russian media, citing Prime Minister Alexander Novak, reported that Moscow will deepen its oil export reduction by 50,000 barrels per day during December, in addition to the current decision to reduce supplies by 300,000 barrels per day.