Red Sea Crisis: Oil Markets Make Contingency Plans for Weeks of Chaos
Business Finance

Red Sea Crisis: Oil Markets Make Contingency Plans for Weeks of Chaos

The Red Sea crisis, marked by attacks on commercial shipping, has prompted oil markets to prepare for disruptions. Although oil flows remain mostly stable, traders and refiners are implementing contingency plans to secure future supplies. Insurance premiums are rising, and some tankers are rerouting around the Cape of Good Hope, which increases voyage times and costs. Asia’s refiners, heavily reliant on imported oil, are monitoring the situation closely, adjusting strategies to maintain steady feedstock flows and mitigate potential risks from the conflict’s escalation. These adjustments may drive up shipping rates and impact refining margins​ S&P Global Webull.

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