Houthi Threats Spark Global Oil Supply Crisis
The Houthi movement in Yemen has threatened Saudi Arabia's oil exports from its West Coast, exacerbating an already precarious global supply situation. The monthslong near-closure of the Strait of Hormuz has caused unprecedented supply tightness, and attacks on Saudi upstream and downstream facilities have complicated west-east export logistics.
According to data from ship tracker Kpler, between July 21-29, only three Saudi crude cargoes crossed Bab al-Mandeb, totaling 3.6 million barrels. This is down from an average of around 15 cargoes per week prior to the latest escalation of Houthi-Saudi tensions.
Total Saudi deliveries of crude, refined products, and LPG via the strait have plummeted from around 3.8 million barrels per day on a weekly basis prior to the Houthi blockade to 1.4 million b/d during the week starting July 20. Non-Saudi flows through the strait have also slowed, with no shipments of Russian crude to Asia or Indian refined products to Europe crossing since July 18.