US-UK Airstrikes Hit Houthi Rebels in Yemen
January 15, 2024
The energy markets are closed today for the Martin Luther King Holiday, so there will be no forward contracts available today.
The markets were higher on Friday, driven mainly by the news that the US and the UK had carried out dozens of airstrikes on Iran-backed Houthi rebel facilities in Yemen. These attacks were in response to Houthi attacks on ships in and around the Red Sea. At least nine oil tankers were stopped or diverted from the Red Sea due to the Houthi attacks. Many ships have been re-routed around Africa, creating concerns about inflation and supply chain disruptions. However, Russia’s UN Ambassador said the US and the UK have triggered a spillover of the conflict in Gaza between Israel and Hamas to the entire Middle East region.
Of course, the market has feared that the conflict will spread and, at some point,have an impact on oil infrastructure and production.
The Baker Hughes Rig Count has oil rigs down 2 to a total of 499, and last year there were 623 oil rigs.