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Egypt’s Suez Canal Authority Monitoring Tensions in Red Sea 

A Suez Canal Authority (SCA) tugboat works to salvage a navigational emergency and technical malfunction sustained by a container vessel “ONE ORPHEUS” during its transit through the Suez Canal in Egypt December 6, 2023. (Suez Canal Authority/Handout via Reuters)
A Suez Canal Authority (SCA) tugboat works to salvage a navigational emergency and technical malfunction sustained by a container vessel “ONE ORPHEUS” during its transit through the Suez Canal in Egypt December 6, 2023. (Suez Canal Authority/Handout via Reuters)
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Egypt’s Suez Canal Authority Monitoring Tensions in Red Sea 

A Suez Canal Authority (SCA) tugboat works to salvage a navigational emergency and technical malfunction sustained by a container vessel “ONE ORPHEUS” during its transit through the Suez Canal in Egypt December 6, 2023. (Suez Canal Authority/Handout via Reuters)
A Suez Canal Authority (SCA) tugboat works to salvage a navigational emergency and technical malfunction sustained by a container vessel “ONE ORPHEUS” during its transit through the Suez Canal in Egypt December 6, 2023. (Suez Canal Authority/Handout via Reuters)

Egypt's Suez canal authority said on Sunday it was closely monitoring the impact of tensions in the Red Sea after recent attacks by Yemen's Iran-backed Houthi militias on vessels in the southern part of the basin.

Two major freight firms including MSC, the world's biggest container shipping line, said on Saturday they would avoid the Suez Canal as Houthi militants stepped up their assaults.

The authority is "closely following the consequences of current tensions," the body's chairman, Osama Rabie, said in a statement. Maritime traffic in the canal was currently normal, he added, without going into further detail.

The Houthis have launched attacks against vessels in the region in protest against Israel's bombardment and invasion of Gaza that has killed almost 19,000 Palestinians, according to Gaza health officials.

Since Nov. 19, 55 ships have rerouted via the Cape of Good Hope, while 2,128 have crossed the canal in the same period, the Suez canal authority said.

Rabie said that on Sunday, 77 ships crossed the canal, including some ships belonging to shipping lines that had announced temporary diversions. Those were vessels that were already in the Red Sea region before the announcements were made.

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Oil Gains Capped by Uncertainty over Sanctions Impact

FILE PHOTO: An oil pump jack is seen at sunset near Midland, Texas, US, May 3, 2017. REUTERS/Ernest Scheyder/File Photo
FILE PHOTO: An oil pump jack is seen at sunset near Midland, Texas, US, May 3, 2017. REUTERS/Ernest Scheyder/File Photo
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Oil Gains Capped by Uncertainty over Sanctions Impact

FILE PHOTO: An oil pump jack is seen at sunset near Midland, Texas, US, May 3, 2017. REUTERS/Ernest Scheyder/File Photo
FILE PHOTO: An oil pump jack is seen at sunset near Midland, Texas, US, May 3, 2017. REUTERS/Ernest Scheyder/File Photo

Oil prices crept higher on Wednesday as the market focused on potential supply disruptions from sanctions on Russian tankers, though gains were tempered by a lack of clarity on their impact.

Brent crude futures rose 16 cents, or 0.2%, to $80.08 a barrel by 1250 GMT. US West Texas Intermediate crude was up 26 cents, or 0.34%, at $77.76.

The latest round of US sanctions on Russian oil could disrupt Russian oil supply and distribution significantly, the International Energy Agency (IEA) said in its monthly oil market report on Wednesday, adding that "the full impact on the oil market and on access to Russian supply is uncertain".

A fresh round of sanctions angst seems to be supporting prices, along with the prospect of a weekly US stockpile draw, said Ole Hansen, head of commodity strategy at Saxo Bank, Reuters reported.

"Tankers carrying Russian crude seems to be struggling offloading their cargoes around the world, potentially driving some short-term tightness," he added.

The key question remains how much Russian supply will be lost in the global market and whether alternative measures can offset the , shortfall, said IG market strategist Yeap Jun Rong.

OPEC, meanwhile, expects global oil demand to rise by 1.43 million barrels per day (bpd) in 2026, maintaining a similar growth rate to 2025, the producer group said on Wednesday.

The 2026 forecast aligns with OPEC's view that oil demand will keep rising for the next two decades. That is in contrast with the IEA, which expects demand to peak this decade as the world shifts to cleaner energy.

The market also found some support from a drop in US crude oil stocks last week, market sources said, citing American Petroleum Institute (API) figures on Tuesday.

Crude stocks fell by 2.6 million barrels last week while gasoline inventories rose by 5.4 million barrels and distillates climbed by 4.88 million barrels, API sources said.

A Reuters poll found that analysts expected US crude oil stockpiles to have fallen by about 1 million barrels in the week to Jan. 10. Stockpile data from the Energy Information Administration (EIA) is due at 10:30 a.m. EST (1530 GMT).

On Tuesday the EIA trimmed its outlook for global demand in 2025 to 104.1 million barrels per day (bpd) while expecting supply of oil and liquid fuel to average 104.4 million bpd.

It predicted that Brent crude will drop 8% to average $74 a barrel in 2025 and fall further to $66 in 2026 while WTI was projected to average $70 in 2025, dropping to $62 in 2026.