Buyers now have more options for crude oil purchases, leading to a shift in the energy landscape
For energy markets, it was not a good omen.
The war in the Middle East is expanding. Since November 19, Houthi militia has launched drone and missile attacks at more than 20 ships passing through the Red Sea ‘in solidarity with Palestinians in Gaza.’
Houthis claim they were targeting vessels with Israeli links or were sailing to Israel. The attacks have led major shipping lines to avoid the Red Sea and instead circumnavigate Africa via the alternative, safer, but longer and costlier route.
Meanwhile, the recent Israeli attack in Lebanon and the bomb blast in Iran all point to the possibility of an expansion of the war theatre in the Middle East. All this means that the war premium on oil could go up.
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In the meantime, interesting developments involving two major ‘sanctioned hit’ oil producers, Iran and Russia, could also impact the global oil markets more broadly.
Toronto-based Rashid Husain Syed is a highly-regarded analyst specializing in energy and politics, with a particular emphasis on the Middle East. Besides his contributions to both local and international newspapers, Rashid frequently lends his expertise as a speaker at global conferences. His insights on global energy matters have been sought after by organizations such as the Department of Energy in Washington and the International Energy Agency in Paris.
For interview requests, click here.
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