Red Sea oil concerns continue

Oil is trading sideways after posting its biggest weekly gain in more than two months, with shipping disruptions in focus following a series of Houthi attacks on ships in the Red Sea. Global benchmark Brent traded above $79 a barrel after rising more than 3% last week, the biggest gain since October. U.S. crude is near $74 a barrel. Ships were forced to reroute after the attacks, prompting the establishment of a multinational maritime task force to help protect merchant ships. Containership giant AP Moller-Maersk A/S says it is now preparing to resume using the route, which connects to the Suez Canal. While recent gains in crude helped offset a quarterly decline, oil remains on track for a loss of around 8% this year. Investors are concerned that global crude supply could outstrip demand next year, despite promises from the Commonwealth of Petroleum Exporting Countries and its allies of further output cuts. Angola left the producer group on Friday over disagreements over quotas, but the remaining members were quick to reaffirm the cartel’s unity. Meanwhile, Russia’s oil processing last week remained near its highest daily level in more than eight months as seaborne exports declined. The U.S. last week announced new price cap sanctions, including sanctions on Russian oil investor Bellatrix Energy Ltd., in an effort to pressure Moscow over the ongoing war in Ukraine.