Oil Prices Plummet Amid Continued Red Sea Shipments
Oil prices plummeted on Friday after rising by over 6% on Thursday following a missile and drone attack on two Saudi Arabian oil tankers in the Red Sea. The Houthis, backed by Iran, launched the attack, which has led to further disruptions in oil shipments beyond the Strait of Hormuz.
Despite threats from the Houthis, some oil tankers have turned off their location transponders, allowing oil shipments to continue in the Red Sea. This has helped to boost Russian crude exports, with data showing a four-week average of 4.13 million bpd through June 28, the highest since Russia invaded Ukraine in 2022.
The OPEC cartel aims to continue a series of oil quota increases over the next few months, completing the return of halted oil production by the end of September. This has added to global oil supplies, putting downward pressure on prices.