Daily Energy Report
Oil price rise, Tanker back-up in Yemen, US sanctions Russia, UK gas storage low, LA utility incompetence, EU wind capacity, China EV growth, Big energy merger, Japan nuclear, Cheaper EVs, and more.
Videos of the Day: Brent Prices Rise by 3% above $79/b
Summary
Today we post videos instead of the Chart of the Day. The first one is a very short video listing the reason for the increase in oil prices today. The second one is an interview discussing the 2025 oil market outlook.
Here is a short video explaining the reasons for the rise in oil prices today:
https://x.com/anasalhajji/status/1877712348112093297
Here is a link to the latest interview on the oil market outlook in 2025:
https://x.com/anasalhajji/status/1877692303373996220
Story of the Day
Bloomberg: Oil Tankers Back Up Near Yemeni Port After Israel Hits Tugs
Summary
An unusually large number of merchant vessels, including at least 15 oil tankers, are backed up near Yemen's Ras Isa port in the Red Sea due to damaged tugboats from Israeli air raids in late December. The damaged tugs have been out of service for three weeks, leading to a bottleneck at the harbor. The situation is worsened by ships being advised to avoid Yemeni waters due to Houthi attacks. The disruptions have significantly increased voyage times and costs.
EOA’s Main Takeaway
It has been clear since November 2023 that the Bab El Mandab area will be risky in a way that will affect shipping.
Here is a link to a Tweet below from November 2023: https://x.com/anasalhajji/status/1726305585526903236
The law of unintended consequences is at play here. The concern that we expressed in the past was an oil tanker being hit in the middle of the strait. A major spill might close the strait for shipping. That would wreak havoc on the world economy.
This story brings us back to the issue we discussed in our 2025 Oil Market Outlook: