Brent oil prices remained stable at $78 per barrel on Tuesday after rising to a local high of $79.30 during yesterday's session. North American WTI crude oil is holding near $72.70 per barrel after rising to $74.40. The rise in oil prices was caused by a series of attacks by Yemeni Houthis on ships crossing the Red Sea. In response to these attacks, major maritime carriers began redirecting their tankers and container ships along alternative routes, and the large British oil and gas company BP plc temporarily stopped oil transportation through the region altogether. «These attacks are nothing new, but their intensity has increased in recent weeks,» said Robert Fraser of Schneider Electric. «The Houthis probably do not have enough resources to completely blockade the region, but they can create disruptions to navigation and change risk assessments.» Additional support for the oil market was provided by statements from the leadership of the US Federal Reserve System last week. The regulator stressed that the cycle of interest rate increases is over, and also hinted at a 75 basis point reduction in the key rate over the next year. Analysts note that the Fed's decision strengthened hopes for a soft rate cut, and macroeconomic data turned out to be quite positive, which also reduced concerns about a hard landing.
