OIES Podcast – The impact of military action in the Red Sea on global gas market

In this latest OIES podcast, brought to you by the Gas Programme, James Henderson talks to Jack Sharples and Mike Fulwood about the effect that military action in the Red Sea is having on the global gas market. They review the recent traffic of LNG vessels in the area prior to the firing of missiles by the Houthi rebels and the air strikes launched in response by the US and UK, before moving on the discuss how journeys have been adjusted in response. They look at the consequences for journey times, transport costs and tanker availability, and also consider the additional impact of the drought in Panama that has led to restrictions on traffic through the Panama Canal. Finally they discuss the limited impact of these disruptions on prices in Europe and Asia to date, reflecting on the fact that benign gas market conditions in terms of warm weather, limited economic growth, high storage levels in Europe and plentiful supply flexibility have outweighed the need to divert LNG traffic away from the Red Sea.