Analyst Kava: oil transportation has risen in price by 40% due to shelling in the Red Sea
The cost of transporting oil has increased by an average of 40 percent due to rocket attacks on tankers in the Red Sea by Yemen's Houthi rebels from the militant group Ansar Allah. This was stated by a senior lecturer at the Department of Economic Theory of the Russian Economic University. G.V. Plekhanov Khoja Kava. His words leads “Prime”.
The expert recalled that the route through the Red Sea is one of the most important for world shipping. In this direction, cargo travels from Asia to Europe. Increasing incidences of missile attacks in the region could significantly complicate delivery.
Due to the forced detour of tankers around the African continent, travel time may increase significantly, which could ultimately lead to an increase in exchange prices for raw materials, the analyst said. “It is obvious that this situation can significantly affect world oil prices,” Cava concluded.
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The crisis situation in the Red Sea worsened on the night of January 11-12. Then US and British troops launched a massive attack on the positions of the Houthi rebels in Yemen.
After this, the cost of futures contracts for the supply of the benchmark North Sea Brent crude during trading on the London ICE Exchange increased by 2.7 percent and reached $78.9 per barrel. At the same time, analysts interviewed by Forbes predicted further increase in quotes by several dollars in the event of an escalation of hostilities in Yemen.
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