- Oil is trading higher, around $72.85, as shipping risks persist
- The US crude oil rig count decreased by two rigs to 499, with the rig count now down by 124 year-over-year
- According to CFTC data, speculators' net-long position in WTI futures increased by 65k contracts through last Tuesday
- Red Sea risks remain high, insurance costs jump (BBG)
- A US-owned commercial shipping vessel was struck with a ballistic missile fired from Yemen on Monday, as attacks on shipping continue in the vital waterway
- The cost of war-risk insurance in the Red Sea has surged, with underwriters now charging between 0.75-1% of the value of a ship to pass through the region, further impeding trade flows
- Shipments of Iraqi crude may face delays as several tankers carrying about 6 MMBbls of crude changed course before reaching the Red Sea, one of which has already been rerouted around Africa
- Russian oil facing delivery issues in India (BBG)
- Increased enforcement of the G7 price cap and challenges with shipping relating to the Red Sea have created issues with getting Russian crude into Indian ports, according to India’s Oil Minister
- The minister said in an interview with Bloomberg, “In the Russian case, it is a question of the price cap, and it is also a question of some of their shipping entities coming under adverse notice of others”
- Last month, the US increased enforcement of the price cap and sanctioned several traders of Russian oil
- India’s Oil Minister said further, “When Russian prices don’t conform, we buy from Iraq, the UAE, and Saudi Arabia”
