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Red Sea disruptions increase oil flows around Cape of Good Hope - U.S. Energy Information Administration (EIA)

Red Sea disruptions increase oil flows around Cape of Good Hope - U.S. Energy Information Administration (EIA)
Energy Information Administration - EIA - Official Energy Statistics from the U.S. Government

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The flow of crude oil and oil products around the Cape of Good Hope has increased by nearly 50% in the first five months of 2024 compared to the 2023 average, according to Vortexa tanker tracking data. This surge is attributed to commercial vessels avoiding chokepoints in the Middle East following attacks by Yemen-based Houthi militants in late 2023. The increase in trade around the cape includes more crude oil from Middle Eastern producers, increased oil product exports to Europe, and the United States sending more oil products to Asia. However, diverting vessels around the Cape of Good Hope increases costs and shipping time, with a journey from the Arabian Sea to Europe via the cape taking about 15 days longer than through the Suez Canal. This trend is expected to be analyzed further in the coming weeks.

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