Brent crude prices edged higher as Saudi Arabia put on hold its oil shipments through the Red Sea.
The suspension of the shipments through the strategic Red Sea oil shipping lane of Bab al-Mandeb comes after Yemeni Houthi rebels attacked two of Saudi Arabia’s tankers.
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Brent crude futures went up 55 cents to reach $74.48 per barrel, while US West Texas Intermediate futures slipped 4 cents to stand at $69.26, Reuters reported.
Prices were also supported by a drop in US crude inventories to their lowest levels in three and a half years.
Saudi Arabia operates an export terminal in Ras Tanura and exports most of its crude using tankers passing through the Strait of Hormuz.
Thereafter, ships pass through Bab al-Mandeb to reach the Suez Canal towards Europe and the SUMED pipeline in Egypt.
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By GlobalDataAccording to the US Energy Information Administration, an estimated 4.8 million barrels per day of crude oil and refined petroleum products passed through the route in 2016 toward Europe, the US and Asia.
Meanwhile, US crude oil stockpiles fell last week as exports increased and stocks at the Cushing hub dropped.
EIA data showed that crude inventories declined 6.1 million barrels in the week ending 20 July, defying expectations for a drop of 2.3 million barrels.
Global economic growth is under pressure from intensifying trade disputes between the US and other economies.
On 25 July, US President Donald Trump agreed to avoid imposition of car tariffs on the European Union.
