WTI advances towards $72.80 amid the confrontation between the US and the Houthis, an Iranian warship sails towards the Red Sea

• The price of WTI gains ground amid the growing possibility of disruptions in the Red Sea.
• US helicopters repelled a Houthi attack on a Maersk ship on Sunday.
• Iranian-led groups launched attacks against US and Israeli forces in Gaza.
• The American ExxonMobil Corp has officially transferred operations of the West Qurna 1 oil field to PetroChina.

The price of West Texas Intermediate (WTI) is trading higher around $72.80 per barrel at the start of the European session on Tuesday. The rise in crude oil prices is linked to a naval confrontation in the Red Sea. Houthi militants attacked a Maersk container ship on Sunday, but the assault was foiled by US helicopters.

Following the incident, the possibility of disruption to Middle East supplies is growing, as an Iranian warship has been reported to have entered the Red Sea. In addition, Iranian-led groups launched attacks against US and Israeli forces in Gaza, raising fears of a broader conflict that could close vital oil waterways, such as the Red Sea and the Strait of Hormuz in the Gulf.

On the other hand, downward pressure on crude oil prices stems from concerns about slowing global economic growth and growing concerns about rising supply, especially from producers outside the Organization of the Petroleum Exporting Countries. and its allies (OPEC+). The oil group faces weakening export demand in 2024, coinciding with a decline in its global market share to its lowest level due to production cuts and Angola's exit from the group. This raises doubts in the market about the ability of OPEC+ to meet the planned supply cuts of about 6 million barrels per day.

Separately, Basim Mohammed, Deputy Oil Minister in Iraq, informed Reuters that the American ExxonMobil Corp has officially withdrawn from the West Qurna 1 oil field in southern Iraq and has transferred its operations to PetroChina, the main contractor. . Iraq and PetroChina have ambitious plans to increase production to 600,000 barrels per day by the end of 2024.