HOUSTON, Texas — Global crude oil and oil products shipments taking the long route between Asia, the Middle East and the West is up 47 percent since attacks began on vessels using the shorter Red Sea route, the Energy Information Administration (EIA) said on Tuesday. The longer route around the Cape of Good Hope to avoid attacks by Yemen's Houthis has pushed up shipping costs, as about 12 percent of world total shipping traffic historically sailed through the Red Sea and Egypt's Suez Canal. Saudi Arabia and Iraq sent more crude oil to Europe around the Cape, rather than through the Red Sea and Suez Canal, accounting for 15 percent of the total increase. Asian and Middle Eastern refiners increased their refined product exports to Europe and diverted the cargoes around the cape, representing 29 percent of the increased trade. AdvertisementRussia sent nearly four times as much crude oil and refined products, including volumes from the Caspian Pipeline Consortium, to Asia around the cape in the first five months of 2024 than in 2023.

Source: Manila Times June 21, 2024 04:10 UTC