Oil started the week on the rise

Oil rose after its first weekly gain since late October as major shipping companies suspended transit through the Red Sea, highlighting the risks to a vital artery for international crude trade. Global benchmark Brent was trading near $77 a barrel after rising 0.9 percent last week to snap a seven-week losing streak. U.S. crude was near $72. Egypt’s Suez Canal Authority said it was “closely monitoring” tensions in the Red Sea after the U.S. said it had shot down 14 drones launched from Iran-backed Houthi-controlled parts of Yemen. Major shippers MSC Mediterranean Shipping Co. and CMA CGM SA were the latest to say they would not allow their ships through the chokepoint amid growing threats over the weekend, while Maersk Tankers A/S said it would insist on its vessels. Houthi militants have increasingly attacked commercial vessels in the Red Sea, particularly those they claim are affiliated with Israel, in response to the fighting in Gaza. Crude has lost a fifth from its peak in late September and is down 10% for the year amid U.S. shale supplies that beat analysts’ expectations and doubts about whether all OPEC+ members will stick to their output cut commitments. Goldman Sachs, previously among the biggest bulls, cut its 2024 Brent forecast range by $10 to $70-$90 a barrel in a report on Dec. 17. That came as the U.S. strengthened its outlook for liquid supply growth next year.