“Everyone is watching each other to see who goes first,” Barbara Harrison, vice president of crude supply and trading at U.S. major Chevron, said at an oil conference in Houston.
Oil executives called on for a return to navigation through the Red Sea en route to the Suez Canal following a halt in attacks by Iran-backed Houthi rebels, but said firms were cautiously monitoring shipping conditions and competitors.
A Liberian-flagged oil tanker that was attacked last year sailed through the Red Sea [last] week, the Suez Canal said on Monday, in one of the first voyages since the Houthi rebels last month said they would limit attacks on commercial vessels to Israel-linked ships until the Gaza ceasefire is fully implemented. After that, the Houthis would stop targeting Israeli-linked ships.
“Everyone is watching each other to see who goes first,” Barbara Harrison, vice president of crude supply and trading at U.S. major Chevron, said at an oil conference in Houston.
The Houthis have carried out more than 100 attacks on ships since November 2023 and have sunk two vessels, seized another and killed at least four seafarers in what they say is solidarity with Palestinians in Gaza.
The intensity of the attacks disrupted global shipping, particularly last year, and prompted navigation changes, with many vessels taking long routes around the southern tip of Africa and others increasing demand to pass the Panama Canal.
The chief trading officer of the State Oil Company of Azerbaijan (SOCAR), Taghi Taghi-Zada, said at the same conference that an increase in large energy companies navigating the Red Sea has yet to be seen.
That “would give confidence” to others, he added.
“We need to watch and see what the wider industry does. We have to see how the insurance market possesses that risk,” said Simon James, vice president of crude trading and refinery optimization at Norway’s Equinor.