Oil climbs $2 with eyes on the Red sea

<p>The situation in the Red Sea appears to be growing untenable for global shipping companies. That may result in the US military intervening to keep the critical shipping rout open.</p><p>This is from Javier Blas at Bloomberg:</p><blockquote>The West has two "b" alternatives with the Houthis, which are disrupting global container / energy trade:

"bomb" or "bribe" — as simple as that.

Neither is great, with lots of collateral damage. But decision time is here as more and more vessels turn away from the Red Sea.</blockquote><p>Curiously, there are also reports of a near-term peace between Houthis and Saudi Arabia.</p><p>For now, BP has paused all tanker transits through the Red Sea and oil is up $2.44 to $73.87.</p><p>On Friday, we learned that oil net shorts are at extreme levels and that makes me think there's the opportunity for a bigger bounce here.</p><p>h/t <a href="https://twitter.com/Rory_Johnston" target="_blank" rel="nofollow">@rory_johnston</a></p>

This article was written by Adam Button at www.forexlive.com.