Oil price news: Oil rises as BP and others start to avoid key Red Sea route

Oil advanced as more oil companies and tanker owners began to avoid the Red Sea amid the ramp up in attacks in the region.

Global benchmark Brent rose as much as 2.8 per cent to trade above US$78. BP Plc said it will pause all shipments through the Red Sea, while Equinor ASA is diverting vessels away from the region. Euronav NV, a major shipowner is also keeping its ships clear for the time being, citing safety grounds.

The raft of firms taking action Monday followed similar moves by container liners last weekend. A company that provides thousands of crew members and ship management to vessels was also asking shipowners to consider alternative routes.

“It has been escalating beyond what we have seen at any point in time really,” Lars Barstad, chief executive officer of the management arm of Frontline Plc, one of the world’s largest tanker owners, said in a Bloomberg TV interview. “We are afraid that it is only a question of time until we see a ship that is completely unrelated to Israel or any part of the conflict that will be attacked.”