The price of oil jumped by more than 1% amid concerns about disruptions in oil supplies due to attacks on ships in the Red Sea. Prices were also supported by a decrease in oil exports from Russia and a weakening of the US currency.
Houthi militants in Yemen stepped up their assaults on commercial vessels in the Red Sea. Egypt’s Suez Canal Authority said it’s “closely following” tensions after the US said it shot down 14 drones launched from Iran-backed Houthi-controlled areas of Yemen. Shipping companies, including the world's largest container shipping lines MSC and A.P. Moller-Maersk, said over the weekend they would avoid the Suez Canal.
The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) fell by 0.12% to 102.43.
Meanwhile, on Sunday, Russia announced that it would increase the reduction in oil exports in December potentially by 50,000 barrels per day or more - earlier than promised as the world's largest exporters try to support global oil prices.
Brent and WTI ended their longest streak of weekly losses in half a decade with small gains last week after a Fed meeting raised hopes that interest rate hikes had ended and monetary easing was on the way.