The structure of the benchmark Brent crude futures market hit its most bullish in two months on Friday, as oil tankers diverted from the Red Sea following air and sea strikes by the United States and Britain on targets in Yemen.

The premium of the first-month Brent contract to the six-month contract LCOc1-LCOc7 rose to as much as $2.09 a barrel on Friday, the highest since early November. This structure, called backwardation, indicates a perception of tighter supply for prompt delivery.

The U.S. and UK strikes added to market concerns about the Israel-Hamas war widening into a broader conflict in the Middle East affecting oil supplies from the region, especially those moving through the Strait of Hormuz.

Brent’s outright price LCOc1 rose as much as 4.3% on Friday towards $81 a barrel.
Source: Reuters (Reporting by Alex Lawler; editing by Jason Neely)