US Report: Houthi Devastation.. Shifts in Oil Flows as Ships Avoid the Red Sea

A new report issued by the US Energy Information Administration on Friday revealed that the flow of crude oil and petroleum products passing through the Bab al-Mandab Strait decreased sharply in 2024, by more than 50% compared to last year.

According to the American website oilprice , which specializes in energy affairs, this point located at the southern entrance to the Red Sea plays a crucial role in global energy trade, as disturbances can cause significant delays in supply chains, leading to higher shipping costs and higher global energy prices.

Tensions in the region have been high since earlier this year, with traffic in the Red Sea dropping sharply following a series of attacks by Yemen’s Houthi militia on commercial vessels in the area, which began in November 2023. As a result, many shipping companies now prefer to avoid the Bab el-Mandeb altogether, taking the longer and more expensive route around the Cape of Good Hope at the southern tip of Africa.

This, according to the site, has reduced oil flows through the Red Sea, which averaged 8.7 million barrels per day in 2023, to just 4.0 million barrels per day in 2024.

Meanwhile, oil shipments around the Cape of Good Hope rose to 9.2 million barrels per day in the first eight months of 2024, up from 6.0 million barrels per day in 2023. This shift adds pressure to global energy markets, especially since Europe and other regions rely heavily on these sea routes for their energy imports.

In August, Trafgura, one of the world’s largest independent oil traders, estimated that an additional 200,000 barrels per day of fuel oil would be consumed by tankers alone this year as they divert around the Cape of Good Hope, representing a 4.5% increase in annual emissions from tankers alone.

The American website stated that choke points such as Bab al-Mandab and the Suez Canal are vital to ensuring the smooth flow of oil and natural gas from the Persian Gulf to global markets. Any disruption to these narrow sea routes, even for a short period, would lead to cascading effects on supply, higher costs and potentially destabilizing energy prices around the world.