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Houthi Threats Ignite New Oil Price Surge
['Tom Kool', 'Tom Majored In International Business At Amsterdam S Higher School Of Economics', 'Later Completed An Executive Mba In Energy Transition At The University Of Groningen.', 'More Info']
Oilprice.com
Houthi attacks are expanding the Middle East conflict into the Red Sea, forcing tankers to reroute and pushing Brent above $91 amid growing fears of prolonged supply disruptions.
- Of this, only 4-4.5 million b/d due to port limitations in Yanbu, the endpoint of the East-West pipeline and a key infrastructure chokepoint, with an additional 1.5-2 million b/d shipped to Aramco refineries along the Red Sea coast.
- US oil major Chevron (NYSE:CVX) has signed a Heads of Agreement with the governments of Iraq and Syria to potentially build a cross-border oil pipeline project that would evacuate Iraqi oil to the Eastern Mediterranean.
With the first Asian-chartered tankers carrying Saudi oil now making U-turns to avoid Houthi drones and missiles, the double risk premium of disrupted Middle Eastern flows sent ICE Brent above $91 per barrel.
Saudi Crude Tankers Reverse Course.