- Oil is trading lower near $78.60, reversing some gains from yesterday
- Rangebound prices have led to a drop in implied volatility, with Brent and WTI second month volatility falling to the lowest level since September
- Red Sea attack leads to fatalities (BBG)
- Attacks on shipping in the Red Sea escalated yesterday after a vessel was struck by a missile, killing three people
- The US issued a statement saying, “The Houthis have killed innocent civilians by continuing their reckless attacks against international commercial shipping, which impacts countries throughout the world”
- The oil market continues to see risk premium resulting from the attacks, as ships have been forced to avoid the waterway, leading to higher freight rates
