Global Fuel Shipping Costs Soaring Amid Attacks: Impact on Oil Futures and Tanker Companies

2024-01-22 18:30:04

According to multiple media reports on Monday (22nd), the cost of transporting fuel on major trade routes is soaring as attacks on Red Sea shipping ripple across global markets. On the other hand, the Houthi armed group in Yemen claimed to have launched a missile attack on a US cargo ship in the Gulf of Aden. After the news came out, West Texas crude oil futures rose by more than 2% in a single day on Monday.

Daily shipping rates for gasoline from northwest Europe to the U.S. east coast have nearly tripled since the start of the year, reaching nearly $38,000 a day on Monday, according to data from the Baltic Exchange.

Analysts at Clarksons Securities, including Frode Morkedal, estimate fleet usage is up 2.5 percentage points from the fourth-quarter average. “Part of the increase in cargo volumes is due to vessels being rerouted around Africa, resulting in lower spot cargo volumes,” the analysts wrote in a note earlier on Monday.

Several product tanker companies said they would no longer ship cargo through the Red Sea in response to attacks on merchant ships by Youth Movement militants, with ships including the Almi Globe sailing around Africa rather than through. Dangerous zone.

Prices for fuel shipments from the Middle East to Japan rose by two-thirds in a week, data from the Baltic Exchange showed. And longer voyages mean fewer ships can carry cargo on the spot market, limiting ship supply.

On the other hand, media reports pointed out that on the 22nd local time, Youth Movement spokesperson Yahya al-Saree stated in a statement that the organization had used missiles to attack the OCEAN JAZZ, an American cargo ship in the Gulf of Aden. ). There has been no response from the U.S. yet.

As of press time, West Texas crude oil futures expiring in February rose 2.64% to US$75.35 per barrel;Brent crude oilFutures rose 2.27% to $80.34 a barrel.

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