Largely Holding Monday Gains, As US Announces Red Sea Naval Task Force

Oil benchmarks have largely drifted sideways in the first part of Tuesday trade. We were last near $78.10/bbl for Brent, a touch above end Monday levels. WTI was last around $72.35bbl, down slightly from end Monday levels near $72.50/bbl.

• Near term focus remains on developments in the Red Sea, where attacks from Houthi rebels in Yemen is threatening a major oil shipping route. Several companies announced yesterday they were diverting shops away from the region.
• Headlines earlier today crossed that the US has put together a new naval task force to patrol the troubled area and protect commercial vessels (see this link for more details).
• Focus will be whether Houthi (who are backed by Iran) attacks escalate from here and cause further stress in terms of shipping lines.
• For Brent we are above $77.81 (20-day EMA) with Monday's high of $79.49 stopping short of resistance at $80.76 (50-day EMA).