Oil closes at monthly high, Brent crosses $79

Oil drilling rigs

Oil prices consolidated their gains today, Dec. 19, after the risk premium increased as a result of attacks on ships in the Red Sea, which disrupted maritime trade and forced more companies to reroute vessels.

Brent crude futures for February delivery rose by 1.65%, or $1.28, to close on Dec. 19 at $79.23 per barrel—the highest level since Nov. 30.

WTI crude for February delivery (the most active contract) increased by 1.55%, or $1.12, to $73.94 per barrel, which is the highest closing price since the beginning of this month.

Tanker tracking data collected by Bloomberg showed that the average shipments of crude oil from Russian ports increased by 80,000 barrels per day to 3.28 million barrels during the four weeks ending on Dec. 17, compared to the average of the four weeks ending on Dec. 10.

Russian Deputy Prime Minister Alexander Novak said that there is no need for immediate action from OPEC+ producers, with oil prices rising and the market moving towards balance.

The American Petroleum Institute's report on oil inventories is expected to be issued later today, and the US Energy Information Administration is scheduled to issue official data on inventories on Dec. 20.