Oil posted gain last week, after seven weeks of decline
Russia to deepen oil export cuts in Dec by 50,000 bpd or more
Shipping firms avoiding Suez Canal amid attacks on vessels

LONDON, Dec 18 Reuters Oil rose more than 1 on Monday as attacks by the Houthis on ships in the Red Sea raised concerns of oil supply disruptions, although ample supply and scepticism around Russia39;s plan to cut exports in December limited gains.

A Norwegianowned vessel was attacked in the Red Sea on Monday and oil major BP said it has temporarily paused all transits through the Red Sea. Other shipping firms said over the weekend that they would avoid the route.

Brent crude futures were up 1.40, or 1.8, to 77.95 a barrel by 1307 GMT, while U.S. West Texas Intermediate crude rose 80 cents, or 1.1, to 72.23.

Both crude benchmarks posted small gains last week, following seven weeks of decline, after a U.S. Federal Reserve meeting last week raised hopes that interest rate hikes are over and cuts are on their way.

The rise in geopolitical risk premium, which has come in the form of regular hostilities towards commercial vessels in the Red Sea by Iranbacked Houthi rebels plays its indisputable part in oil39;s resurrection, said Tamas Varga of oil broker PVM. said Tamas Varga of oil broker PVM.

Even so, despite the rally, Brent and U.S. crude remain in contango, a structure in which oil for prompt delivery trades at a discount to crude for delivery later, suggesting a well supplied physical…