Oil markets have been going through a period of uncertainty for several weeks. Oil prices are rising. They typically rise and fall according to geopolitical events. Indeed, tensions in the Red Sea have had a significant impact on the price of barrels. This Saturday, January 13, prices are going up, so there is a question about its effect on fuel prices in France.
The state of the Red Sea is worrying for world trade. Houthi rebel attacks on shipping are forcing many shipping companies and some liquefied natural gas (LNG) carriers to avoid the world’s main east-west trade route. In response to attacks by these Yemeni groups, the Americans and British responded with attacks on Yemen.
As a result, some tankers were diverted from the Red Sea, increasing oil prices. This Saturday, January 13, Brent is trading at 78.32 USD. For its part, American West Texas Intermediate crude was sold at 73.64 USD. The increase is not significant as prices have not yet reached the levels of a few months ago. However, the market needs to be monitored and if the situation in the Red Sea worsens, prices can rise at any time.
It must be said that the markets reacted quickly to dozens of airstrikes launched on Yemen by American and British warplanes, ships and submarines. Indeed, oil prices rose by several dollars before stabilizing. However, the deterioration of the geopolitical situation in the Middle East has run out of steam due to the lack of direct impact on supply.
What effect on fuel prices in France?
It must be said that the Red Sea is a major route, especially for the connection between Asia and Europe. 20,000 ships pass through the Suez Canal each year, using it as an entry and exit point for boats. Highway of the sea », connects the Mediterranean Sea with the Indian Ocean and thus Europe with Asia. Disruption of this sea transit therefore has many implications for the world economy. Due to these attacks, oil prices, which had calmed down, started to rise slowly.
However, the increase is not significant. Prices are in the low range earlier this year. Therefore, this current increase will not have a major impact on fuel prices in France, which have stabilized relatively after a long period of increases followed by other decreases.
