GTR News Brief: Energy traders face volatile future

Since late last year, Houthi rebels in Yemen have been escalating their attacks on commercial shipping routes in the Red Sea, firing Iranian designed anti-ship missiles and launching drone strikes on vessels carrying goods between Europe and Asia. 

The number of container ships in the region plummeted in December, as shipping companies opted to use the much longer – and more expensive route – around the Cape of Good Hope. 

Initially, and despite the growing risks, oil and gas tankers continued to use the Red Sea corridor. 

But in recent weeks, this has all changed, with the number of vessels carrying crude or petroleum products having dropped to almost zero in the region, in the wake of ongoing Houthi assaults. 

In today’s episode, GTR senior reporter, John Basquill, provides an update on the Red Sea crisis and explains the potential ramifications, both direct and indirect, for the commodities trading sector.