WTI hovers near $77.30 amid threat of supply disruptions, Russian ban on gasoline exports

• WTI price could extend gains on the threat of supply disruptions in the Middle East.
• Houthi militants have disabled key underwater cables linking Europe to Asia.
• Russia announced a six-month ban on gasoline exports starting from March 1.

West Texas Intermediate (WTI) oil price seems to gain upward momentum following disruptions in international sea traffic caused by Iran-led Houthi militants. The WTI price hovers around $77.30 during the European session on Tuesday. Houthi militants have now targeted global communication systems. A recent report indicates that the Yemeni group has successfully disabled key underwater cables linking Europe to Asia.

Additionally, on Tuesday, Russia announced a six-month ban on gasoline exports starting from March 1. This decision aims to stabilize oil prices amidst the maintenance of refineries. According to Russia’s RBC, Prime Minister Mikhail Mishustin approved the ban following a proposal by Deputy Prime Minister Alexander Novak in a letter dated February 21.

Crude oil prices have received a boost as Houthis targeted civilian shipping vessels in the Red Sea. In response, the United States Military Central Command (CENTCOM) conducted attacks against Houthi targets late on Monday, claiming to have destroyed missiles, unmanned vessels, and a drone.

Israeli Prime Minister Benjamin Netanyahu has announced plans for an attack on Rafah, a city where hundreds of thousands of displaced Palestinians are seeking refuge. US President Joe Biden has also weighed in, expressing optimism about negotiators nearing an agreement to halt Israel’s military actions in Gaza within a week. This agreement would be contingent upon the release of at least some of the more than 100 hostages held by Hamas.