Oil climbs as Red Sea tension persists, but Angolas OPEC exit caps gains
Brent crude oil price news: Brent crude futures were up 23 cents, or 0.3 per cent, to $79.62 a barrel by 0121 GMT, while U.S. West Texas Intermediate crude futures were up 22 cents, also 0.3 per cent, at $74.11 a barrel.
Brent crude oil price news: Oil prices rose in early trade on Friday as tensions persisted in the Middle East following Houthi attacks on ships in the Red Sea, although Angola's decision to leave OPEC raised questions over the group's effectiveness in supporting prices. Brent crude futures were up 23 cents, or 0.3 per cent, to $79.62 a barrel by 0121 GMT, while US West Texas Intermediate crude futures were up 22 cents, also 0.3 per cent, at $74.11 a barrel.
More maritime carriers are avoiding the Red Sea due to vessel attacks carried out in support of Palestinians by Yemeni Houthi militant group, causing global trade disruptions through the Suez Canal, which handles about 12 per cent of worldwide trade.
Germany's Hapag-Lloyd and Hong Kong's OOCL were the latest companies to say they would avoid the Red Sea by rerouting ships or suspending sailing.
The US on Tuesday launched a multinational operation to safeguard commerce in the Red Sea, but the Houthis said they would continue to carry on attacks.
Analysts say the impact on oil supply so far has been limited, as the bulk of Middle East crude is exported via the Strait of Hormuz.
Weighing on the market, Angola's oil minister said on Thursday that the country's membership in the Organization of the Petroleum Exporting Countries was not serving its interests. Angola had previously protested a decision by the wider OPEC+ group to reduce the country's oil output quota for 2024.
The Saudi-led producer group in recent months has been rallying support to deepen output cuts and boost oil prices.
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