Crude Extends Gains as More Shippers Reroute Vessels

Front month Brent crude is extending gains, breaking through the first resistance, after Euronav and BP joined previous announcement from other tanker companies to pause all of their traffic through the Red Sea amid reports about more Houthi rebel attacks on vessels on Monday.

• Brent FEB 24 up 2% at 78.05$/bbl
• WTI JAN 24 up 2% at 72.84$/bbl
• BRENT TECHS: (G4) Gains Considered Corrective
  • RES 2: $80.76 - 50-day EMA
  • RES 1: $77.81 - 20-day EMA
• Belgian tanker owner Euronav said on Monday that its ships will avoid the Red Sea route until further notice, it said in a statement. BP also announced on Monday to avoid using the Red Sea route, following previous announcements from Maersk, MSC, Hapag-Lloyd and CMA CGM Group.
• A Norwegian-owned vessel was attacked in the Red Sea Dec. 18 via a strike originating from Houthi-controlled territory in Yemen, according to Reuters citing US officials. The M/V Swan Atlantic was hit by an unidentified object. None of the crew have been injured.
• The British Maritime authority said earlier Dec. 18 that it received reports of two incidents of attempted attacks on vessels in the Red Sea.