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MNI Commodity Weekly: Shipping Shows Mixed Response to Red Sea Security Woes

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red and black ship
  • Shipping Shows Mixed Response to Red Sea Security Woes: The Houthi attacks in the Red Sea have disrupted global freight, but shippers appear divided over the decision to divert around the Cape of Good Hope while energy flows face greater disruption this week.
  • Oil Markets: Crude oil bounces within a $6/bbl range this year as weak demand offsets supply risks from the Middle East, Libya and Black Sea disruptions. Oil product markets extend gains amid tight supply expectations due to US refinery outages.
  • Gas Markets: Global gas benchmark prices continue a bearish trend as forecasts suggest a rapid warming in temperatures from next week. European gas prices plunged to their lowest since early August this week, amid ample supplies and high inventories, shrugging off supply risks from Red Sea vessel attacks. Similarly, Asian LNG prices are softer on high inventories and above-norm temperatures. US natgas prices also pulled back this week as production is expected to recover and demand to weaken in the next days amid milder weather.
  • *See also Red Sea security impact on LNG flows.
Full piece here:

MNI Commodity Weekly - Shipping Shows Mixed Response to Red Sea Security Woes.pdf





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