Aramco CEO expects oil markets to tighten due to risks in Red Sea
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Global oil markets will cope with disruptions in transportation in the Red Sea in the short term, says Amin Nasserno, CEO of Saudi Aramco. However, he said if Houthi attacks on ships continue, it will lead to a shortage of tankers due to longer routes and delays in supplies.
In an interview Reuters Mr. Nasserno said Aramco could avoid supplies through the Bab al-Mandeb Strait near Yemen thanks to a pipeline connecting its oil facilities in the eastern Arabian Peninsula to the west coast. This provides the company with faster access to the Suez Canal. He clarified that some petroleum products may have to be transported around Africa. He does not expect more Houthi attacks on Aramco facilities due to peace talks between Saudi Arabia and Yemen.
“In the short term, available tankers are likely to be available. But in the longer term, this could become a problem. There will be a need for more tankers, and they will have to make longer voyages,” Amin Nasserno said on the sidelines of the World Economic Forum in Davos.
According to Mr. Nasserno, oil demand in 2024 will be 104 million barrels per day (b/d), which is 1.5 million b/d more than last year. Growing demand, combined with low inventories, will contribute to a further narrowing of the market, he is sure.
In December 2023, shelling of international ships in the Red Sea became more frequent. This happened against the backdrop of the war between Israel and the Palestinian Hamas movement. Due to the shelling, the revenues of the Suez Canal for 11 days of January were already fell by 40%. January 12 USA and UK struck on Houthi positions in Yemen. The blows continued 13 And January 14. By data Bloomberg, Russian tankers began avoiding the Suez Canal route due to Houthi attacks.
About the consequences of the shelling – in the material “Kommersant” “With persistent interruptions”.
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