Militant Attacks Disrupt Oil Shipping, Forcing Asia and Europe to Rely More on Regional Supplies
• Militant attacks in the Red Sea are making oil supplies from closer geographic regions more attractive, leading to a fragmentation of the global oil market • There is less tanker traffic through the Suez Canal, with crude instead shipping around Africa or sourced closer to destination markets • Asia and Europe are relying more on regional supplies like Murban crude and North Sea oil rather than diversifying sources • Higher transport costs from shipping disruptions are feeding into higher oil prices • The situation threatens the supply flexibility and margins of major importers like India and South Korea