Showing posts from December 17, 2023

Tankers, Terror, and Tariffs: How Houthi Attacks are Squeezing the Global Economy

Houthi attacks on ships in the Red Sea The rate of attacks on commercial ships in the Red Sea by the Houthi rebels in Yemen is increasing in proportion to the Israel firepower directed at Hamas in the Gaza Strip - to a crisis level. Judging by the warships that congregate in the region and the critical discussions that take place in the corridors of power in the West and their regional allies, the situation has clearly evolved into a military conflict on a second front, as far as the war in the Gaza Strip is concerned . The recent spate of Houthi attacks that started on Israeli-linked ships at first, has since been extended on other commercial ships as well in the Red Sea; the development has sent shockwaves through the global shipping industry and raised concerns about a potential spike in oil prices. This strategic waterway, responsible for roughly 10% of the world's seaborne oil trade and 12% of global trade overall, has become a precarious route due to the escalating confl

Japan to Hit Record-Low Petroleum Consumption in 2024: Refinery Closures and Aging Population Blamed

  Japanese refinery closures - 2024 The beleaguered crude oil markets that look forward to catching a glimpse of hope in the coming New Year, was dealt yet another disastrous blow last week, when the EIA, US Energy Information Administration, announced the refinery closures in Japan, coupled with a serious decline in petroleum consumption. Adding insult to the injury, the report, published on December 13, says that the petroleum consumption in 2024 would be the lowest on record since 1980s. Image: credit- the EIA The development will reverberate in the markets even before the dawn of the New Year, 2024, causing further volatility in the coming weeks. Since the next OPEC+ meeting is a long way off, a temporary boost, even if it could  be short-lived, is not in the offing at present in these circumstances. Citing the aging Japanese population that has long been in decline since 2009 as the primary cause, the EIA does not see any reversal of the trend in the near future.  At present, more

Latest Energy News from EIA