Oil supply risks mount as Brent tops US$102 on threat of Middle East shipping routes disruption
RISING risks to global oil supplies pushed Brent crude above US$102 a barrel on Monday, with the threat of further disruption in key Middle East shipping routes compounded by OPEC+’s decision to keep production quotas unchanged next month. The renewe...
Brent crude prices surged past US$102 a barrel on Monday, driven by escalating Middle East tensions and the potential disruption of crucial shipping routes in the Bab el-Mandeb. This comes after the oil-producing coalition OPEC+ announced that it would maintain production quotas unchanged next month, despite crude prices nearing the US$100-a-barrel level and diesel prices hitting record highs.
The ongoing conflict in Yemen has seen Saudi-backed forces launch a full-scale military operation against the Iran-backed Houthi rebels, who have taken control of the Bab el-Mandeb, a key strategic chokepoint linking the Red Sea and Gulf of Aden. This development has raised significant concerns over the movement of oil through one of the world's most vital maritime routes, exacerbating existing supply disruptions originating from the broader Middle East conflict.
In response to the turmoil, G7 nations have begun releasing emergency oil reserves, highlighting the mounting apprehension about the economic ramifications of persistent supply interruptions. The US dollar held steady, with the Dollar Index at 101.968, an increase of 0.04 percent from the previous day and 2.82 percent over the past month.
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