Goldman Sachs said that the disruption of energy flows in the Red Sea is unlikely to have a significant impact on the world** and liquefied natural gas (LNG)**, as the opportunity for vessel diversion means that production should not be directly affected, Zhitong Finance has learned. Goldman Sachs analysts said that assuming the total flow of all 7 million barrels per day (to the north and south) extends the shipping route, it will make the spot *** relative to the long-term average price **$3-4 barrels**.
Oil prices continued on Tuesday, extending gains from the previous session as Yemen's Houthi rebels launched attacks on ships in the Red Sea, disrupting the sea and forcing businesses to change the course of their vessels.
Oil and gas giant British Petroleum (BPUS) said it would suspend all shipments of goods through the Red Sea. BP said crew was a priority for the company, stressing that commercial pressures are currently on the back burner in the company's decision-making. Tanker Group Frontline (FROUS) also said on Monday that its ships would avoid passing through the Red Sea, suggesting that the effects of the crisis are spreading to include energy shipments.
According to the data, the Red Sea connects the Mediterranean Sea through the Suez Canal and the Gulf of Aden through the Bab el-Mandeb Strait, thus connecting the Atlantic Ocean (600558) and the Indian Ocean, which is strategically important and one of the busiest shipping routes in the world. Data shows that 12% of the world's ** transportation passes through the Red Sea region.
However, Goldman Sachs analysts, including Callum Bruce and Daan Struyven, wrote in a Dec. 18 note that assuming all 7 million b/d of total flows (north and south) extend the shipping route, it would make spot $3-$4 relative to the long-term average price, as more oil being transported by sea would reduce the availability of global commercial inventories.
Linghexun plus members, watch more exclusive content for free: 8 major financial columns, exclusive interpretation of the latest and hottest information dry goods, and grasp the market investment trend one step faster.