Key facts
- Oil prices surged, with Brent crude exceeding $91 per barrel, due to escalating Houthi threats in the Red Sea.
- Saudi Aramco shipped record volumes of crude from its Red Sea port of Yanbu.
- Houthi rebels warned shipping companies against loading cargo in Saudi ports.
- Two tankers carrying Saudi crude reversed course in the Red Sea to avoid Houthi drones and missiles.
- The Caspian Pipeline Consortium suspended loadings at its Black Sea terminal following tanker attacks.
- Egypt is in talks to secure significant LNG imports.
- The Panama Canal is reducing daily transits due to low water levels.
Oil prices surged, with Brent crude exceeding $91 per barrel, as escalating Houthi threats in the Red Sea expand the Middle East conflict and threaten supply routes. Saudi Aramco shipped record volumes of crude from its Red Sea port of Yanbu amid these growing concerns.
Yemen's Houthi rebels have warned shipping companies against loading cargo in Saudi ports, threatening vessels with attacks. This comes as Saudi Arabia has been relying on the East-West pipeline to evacuate its production towards oil markets, with Yanbu port being a key infrastructure chokepoint. Saudi Aramco reportedly surpassed Yanbu's capacity limits by loading an unprecedented volume of crude in the week up to July 17.
Two tankers carrying Saudi crude to India and China respectively made U-turns in the Red Sea after the Houthis declared a naval blockade against Saudi Arabia, highlighting the growing disruption risks facing regional oil shipments. The Caspian Pipeline Consortium also suspended crude loadings at its Black Sea terminal after two tankers were attacked.
In other energy-related news, Colombia's state oil firm Ecopetrol revealed a cyberattack compromised data. Egypt's national gas company is reportedly in talks to buy significant LNG cargoes. The Panama Canal Authority will suspend vessel booking system capacity and cut daily transits due to low water levels at Gatun Lake.
Kazakhstan's state-owned KazMunayGas intends to pay its share of a disputed environmental penalty at the Kashagan oil field. In the UK, new Prime Minister Andy Burnham has scrapped VAT on household electricity bills and appointed Miatta Fanbulleh as energy secretary.
The benchmark LME three-month copper contract rose to a one-month high amidst shrinking inventories and robust Chinese physical demand. Previously, oil prices had increased after the U.S. and Iran postponed peace talks, with Switzerland confirming the delay and Vice President J.D. Vance canceling his planned trip. The Israel Defense Forces reported striking southern Lebanon in response to alleged Hezbollah ceasefire violations, with Brent crude futures climbing back above $80 per barrel and WTI rising to $76.28.