How could Red Sea attacks affect oil and gas shipping?

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Several shipping companies and a few liquefied natural gas (LNG) tankers have decided to avoid the world's main East-West trade route, following attacks launched by Yemen's Houthi group on commercial ships at the southern end of the Red Sea.

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20 Dec 2023

The attacks raised the spectre of another bout of disruption to international commerce following the upheaval of the COVID pandemic, and prompted a U.S.-led international force to patrol waters near Yemen.

The attacks have made reaching the Suez Canal more perilous.

About 12% of world shipping traffic transits the canal and 4-8% of global LNG cargoes have passed through it in 2023.

As much as 8.2 million barrels per day (bpd) of crude oil and oil products traversed the Red Sea over January-November, according to analytics firm Vortexa.

This year, a total of 16.2 million metric tons (MMt), or 51% of LNG trade, has flowed from the Atlantic Basin east through the Suez Canal, while 15.7 MMt went through the canal from the Pacific Basin west, according to S&P Global Commodity Insights.

The Suez Canal is one of the