Saudi Arabia’s crucial East-West Yanbu pipeline that circumvents the Strait of Hormuz is pumping oil at its full capacity of 7M barrels/day, according to sources.
With Yemen’s Houthis now saying they are entering the war in support of Iran, the concern for the oil market will be that the Red Sea becomes a new front in the conflict. While the Houthis have not given any indication they would attack tankers going through the Red Sea and Bab El-Mandeb strait, they have previously threatened to disrupt oil transport in the area with missiles and drones. The Yanbu route only partly offsets the hit to supply from shutting Hormuz, through which about 15M barrels/day of crude shipments passed before the war. But the bypass is one reason oil prices haven’t reached the crisis-level highs of previous supply shocks.
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
Post your comment
No Comments