Oil executives are cautiously monitoring shipping conditions in the Red Sea following a halt in attacks by Iran-backed Houthi rebels. A Liberian-flagged oil tanker recently sailed through the Red Sea, marking one of the first voyages since the rebels announced a limitation on attacks on commercial vessels until the Gaza ceasefire is fully implemented. The Houthis have carried out over 100 attacks on ships since November 2023, disrupting global shipping and prompting navigation changes.
Barbara Harrison, vice president of crude supply and trading at Chevron, mentioned that everyone is waiting to see who navigates the Red Sea first. The State Oil Company of Azerbaijan (SOCAR) Chief Trading Officer, Taghi Taghi-Zada, noted that there has not been a significant increase in large energy companies navigating the Red Sea yet. Simon James, vice president of crude trading and refinery optimization at Equinor, emphasized the need to observe the wider industry’s actions and how the insurance market handles the risk.
The attacks by the Houthis have led to disruptions in global shipping, forcing vessels to take longer routes around Africa or increase demand to pass through the Panama Canal. The situation has prompted cautious monitoring by oil executives, who are assessing the potential risks and waiting to see how competitors navigate the Red Sea. Despite the recent halt in attacks, firms remain vigilant and are observing the industry’s response to determine the best course of action.
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