Oil prices rise on Red Sea warning. What happen?

Oil prices are back in focus as the Asian session rallied.
At the time of writing, Brent futures advanced 0.98% to 77.30 dollars a barrel and the WTI price traded at 72.50 dollars a barrel with an increase of 1.00%.
Overall, crude oil has lost about a fifth from its late-September high and is down 10% year-on-year, pushed down by U.S.
shale supply exceeding analysts' expectations and skepticism that all oil OPEC+ members will keep their commitments to reduce production.
Although hedge funds are now the least bullish on data going back to 2011, Wall Street analysts see some room for a price rebound next year.
Meanwhile, while waiting for the opening of the European stock markets, oil is gaining.
The reason, however, is in the Red Sea.
The threat from Houthi militants, who have attacked several merchant ships in this strategic stretch of sea in recent weeks, is pushing major global crude shippers to change course.
With direct consequences on oil supply.
Oil prices on the rise: what's happening in the Red Sea The geopolitics of the Middle East is impacting the oil market.
Shipping giants such as MSC Mediterranean Shipping Co.
and CMA CGM SA were the latest to announce they will not send their ships to the Red Sea due to growing threats, while Maersk Tankers said it is finding new solutions for its ships to have the option to avoid the route.
Attacks on ships by Houthi militants in the Red Sea – particularly ships they claim are linked to Israel – in response to the war in Gaza are now a risk for those transporting and supplying crude oil.
Specifically, Bab al-Mandab (strait connecting the Red Sea to the Gulf of Aden) is one of the most important routes in the world for global shipments of goods by sea, in particular crude oil and fuel from the Gulf heading west for the Mediterranean via the Suez Canal or with the nearby SUMED pipeline, as well as raw materials headed to Asia, including Russian oil.
Finding other routes for the supply of oil which usually passes through the Red Sea is a further element that breaks the balance of the sector.
“The focus remains on supply, with U.S.
crude production hitting new records towards the end of the year,” said Robert Rennie, head of commodities and carbon research at Westpac Banking Corp.
“It's not certain whether rising tensions in the Red Sea will have a substantial influence on oil prices, even as logistics and shipping costs increase.” The risk of an upheaval is real and Brent and WTI prices have indeed skyrocketed.
Furthermore, bad news on the offer also came from Moscow.
Russia said Sunday it would step up oil export cuts in December by potentially 50,000 barrels a day or more, earlier than promised.
This comes after Moscow suspended around two-thirds of cargoes of its main Urals crude export from ports due to a storm and scheduled maintenance.
The combination of the decrease in Russian oil with uncertainty about the safety of the Red Sea routes has triggered the rise in oil prices.