19.12.202319:04:00UTC+00Oil Futures Settle Higher For 2nd Straight Day

Oil prices rose on Tuesday, extending gains from the previous session, amid concerns about supplies following several companies rerouting their vessels due to the attacks by the Houthi militants in the Red Sea.

About 12% of world shipping traffic passes up the Red Sea and through the Suez Canal.

Several countries, led by the U.S. have agreed to jointly carry out patrols in the southern Red Sea and Gulf of Aden after the Iran-backed Houthis waded into the Israel-Hamas conflict by attacking vessels in vital shipping lanes, causing supply disruptions and raising supply concerns.

The Houthis have reportedly vowed to defy the U.S.-led naval mission and keep hitting Israeli targets in the region.

West Texas Intermediate Crude oil futures for January ended higher by $0.97 or about 1.3% at $73.44 a barrel.

Brent crude futures settled at $79.23 a barrel, gaining $1.28 or about 1.6%.

Several shipping giants, including Maersk, Mediterranean Shipping Company, CMA CGM, Evergreen, and BP have paused shipping through the Suez Canal due to "deteriorating security" in the Red Sea.

Meanwhile, markets await weekly petroleum reports from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA).

The API's report is due later today, while the EIA will release its crude inventory data Wednesday morning.