Houthi Threats Ignite New Oil Price Surge

Houthi Threats Ignite New Oil Price Surge Tom Kool Tue, July 21, 2026 at 5:53 PM GMT+2 6 min read CL=F 2222. SR Houthi attacks are expanding the Middle East conflict into the Red Sea, forcing tankers to reroute and pushing Brent above $91 amid growing fears of prolonged supply disruptions. Aramco Floods the Red Sea With Crude Ahead of Houthi Escalation - Perhaps foreshadowing an escalation in the Persian Gulf, Saudi Arabia's national oil company Saudi Aramco shipped record volumes of crude from its Red Sea port of Yanbu over the past four weeks.

- Yemen's Houthi rebels have sent an email to most global shipping companies, warning against loading any cargo in Saudi ports and threatening with strikes in case they come within operational reach. - Following the closure of the Strait of Hormuz, Saudi Arabia has been relying on the 7 million b/d East-West pipeline to evacuate its production from its eastern regions towards oil markets.     - Of this, only 4-4.

5 million b/d due to port limitations in Yanbu, the endpoint of the East-West pipeline and a key infrastructure chokepoint, with an additional 1. 5-2 million b/d shipped to Aramco refineries along the Red Sea coast. - According to Bloomberg, Saudi Aramco surpassed Yanbu's capacity limits by loading an unprecedented 5.

9 million b/d of crude in the week up to July 17, up 50% compared to the March-June average. Market Movers - Global trading giant Vitol is reportedly mulling the sale of its US shale oil Joint venture VT Energy Partners to a consortium of private equity partners Carnelian Energy and EnCap Investments for a total of $2. 3 billion.

- US oil major Chevron (NYSE:CVX) has signed a Heads of Agreement with the governments of Iraq and Syria to potentially build a cross-border oil pipeline project that would evacuate Iraqi oil to the Eastern Mediterranean. - Norway's offshore specialist Vaar Energi (OSL:VAR), majority-owned by Italy's ENI, has agreed to combine its business with regional peer BlueNord in a $1. 33 billion deal, creating the largest independent producer of oil in Europe.

- Japan's top utility firm JERA , supplying the equivalent of 30% of the country's power, has launched a feasibility study for a US listing as it seeks to expand overseas and broaden its funding options. - US shale specialist Magnolia Oil & Gas Corp (NYSE:MGY) has agreed to buy rival WildFire Energy for $4. 1 billion, boosting its acreage across the Eagle Ford and Austin Chalk shale plays in Texas, raising its output by 50% to 160,000 boe/d.

Tuesday, July 21, 2026 The US-Iran military escalation last week was focused on assets in the Persian Gulf, however, the entry of Houthis into the wider conflict risks triggering further supply disruptions in the Red Sea. With the first Asian-chartered tankers carrying Saudi oil now making U-turns to avoid Houthi drones and missiles, the double risk premium of disrupted Middle Eastern flows sent ICE Brent above $91 per barrel. More headaches for ship captains across Asia, as the daily bombing of ships that attempt to surreptitiously pass through the Strait of Hormuz is far from being over.

Story Continues Houthis Extend Threats to Saudi Ports. Yemen's Houthi militias warned shipping companies against calling at Saudi Arabian ports, threatening vessels with attacks in any location, raising concerns over Red Sea trade flows as all Saudi Aramco's 4 million b/d of oil exports now pass through Yanbu. Saudi Crude Tankers Reverse Course.

Rodos and Xin Long Yang, two tankers carrying Saudi crude to India and China respectively, made U-turns in the Red Sea after Yemen's Houthis declared a naval blockade against Saudi Arabia, highlighting the growing disruption risks facing regional oil shipments. Did Pemex Lose 10% Of Oil Production? Mexico's state-owned Pemex rejected claims that 137,000b/d of crude had disappeared from its balance sheet, citing routine inventory, logistics and accounting adjustments, while reporting a 30% year-on-year decline in crude theft losses in Q1.

CPC Export Hub Hit by Tanker Attacks. The Caspian Pipeline Consortium suspended crude loadings at its Black Sea terminal after two tankers were attacked whilst loading, raising risks to Kazakhstan's key export route that handles roughly 80% of the country's shipments, 1. 6 million b/d of crude.

Ecopetrol Cyber Breach Sparks Risk Warning. Colombia's state oil firm Ecopetrol (NYSE:EC) revealed that a cyberattack compromised data linked to 3,300 accounts across 15 subsidiaries, warning the incident could have a material impact on its business even as crude production remains unaffected. Iran Rushes Out Oil Before Door Slams Shut.

Iran has reportedly moved 70 million barrels of crude toward Asia during the brief suspension of the US maritime blockade in June-July, garnering $6 billion from the sales as tankers flocked to Malaysia before exports were squeezed once again. EU Eyes Relaxation of Carbon Price Squeeze. The European Union proposed boosting free emissions allowances under its ETS carbon-trading mechanism, unlocking around 80 million additional permits for industry through 2030, seeking to shield energy-intensive sectors from rising carbon costs.

India Draws the Line at E20. India said it has no plans to hike ethanol blending in gasoline beyond 20% or introduce ethanol blending in diesel, reaffirming its current biofuels strategy after achieving its nationwide E20 target ahead of schedule, displacing some 100,000 b/d of crude oil imports. Panama Canal Tightens Ship Access.

The Panama Canal Authority will suspend 5% of Its vessel booking system and cut daily transits to 34 vessels per day due to water levels at Gatun Lake, raising the prospect of longer waits and congestion at one of the world's most critical shipping chokepoints. Kazakh NOC Breaks Ranks on Kashagan Fine. Kazakhstan's state-owned KazMunayGas intends to pay its share of a disputed $5 billion environmental penalty at the Kashagan oil field, diverging from its Western majors who continue to challenge the sulphur fine through international arbitration.

  UK Cuts Power Bills, Shakes Up Energy Team. New UK Prime Minister Andy Burnham has scrapped VAT on household electricity bills and appointed Miatta Fanbulleh as energy secretary, signaling a cost-of-living focus while energy companies expect him to define his policy on North Sea oil and gas.   Copper Rides Chinese Tightness Higher.

The benchmark LME three-month contract rose to a one-month high of $13,835 per tonne amidst shrinking inventories and robust Chinese physical demand, while lingering U. S. tariff uncertainty provided additional support to industrial metals markets.

Egypt Risks It All for LNG Imports. Egypt's national gas company EGPC is reportedly in talks with energy majors including Shell and TotalEnergies to buy 15-18 cargoes of LNG per month for the next 3 years just as its usual pricing peg – the TTF benchmark - has jumped to $20 per MMBtu this week. By Tom Kool for Oilprice.

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