2023.12.2208:56:00UTC+00Oil Set For Weekly Gain Due To Supply Fears

Oil prices rose sharply on Friday and were set for a second weekly gain as concerns about the security of Red Sea shipping outweighed doubts surrounding OPEC's efforts to limit global supply.

Benchmark Brent crude futures jumped 1 percent to $80.15 per barrel, while WTI crude futures were up 1.1 percent at $74.69.

In a significant development affecting the global maritime industry, several major shipping companies have paused or suspended Red Sea operations - increasing fears that global supply chains could be severely disrupted.

Germany's Hapag-Lloyd and Hong Kong's OOCL are the latest shipping companies to avoid the Red Sea after attacks by Yemen's Houthi group on vessels.

The have put a chokehold on ship passages through the Suez Canal, which handles about 12 percent of worldwide trade.

Meanwhile, OPEC+ unity is in focus after Angola said it would exit from OPEC after 16 years.

The announcement highlighted tensions within the producer group as it seeks to limit output going into the new year.