Aramco chief warns of potential tanker shortages due to Houthi attacks

The ongoing attacks by Iran-aligned Houthi militants on commercial vessels could lead to a shortage of oil tankers and potential supply delays, Aramco’s chief executive Amin Nasser told Reuters.

PHOTO: An LNG tanker passing through the Suez Canal. Getty Images

Nasser expects that prolonged attacks on commercial vessels in the Red Sea would lead to a shortage of tankers due to longer voyages and supply delays.

Several shipping companies are rerouting their vessels via the longer Cape of Good Hope route, which requires an additional 10-14 days of voyage. This shift could potentially lead to a shortage of tankers, as vessels take more time to reach their destinations because of the longer route.

"If it's [attacks persist] in the short term, tankers might be available, but if it's longer term, it might be a problem," Nasser said in an interview this week at the World Economic Forum.

The Suez Canal handles about 12% of seaborne global trade, according to the US Energy Information Administration (EIA). It serves as a shorter route for shipping between Asia and Europe.

Saudi-Yemen peace talks

Nasser does not expect the Yemeni militant group to attack Aramco’s facilities because of the peace talks between Saudi Arabia and Yemen.

The Saudi state-owned oil giant has the option to bypass the Bab al-Mandeb strait through a pipeline that connects its eastern oil facilities to the western coast, Nasser said. This would provide the oil giant with a more efficient route to the Suez Canal, he added.

By Aparupa Mazumder 

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