Commodity trader Trafigura is evaluating the security risks of future Red Sea voyages following an attack on the company's Marlin Luanda oil tanker by Yemen-based Houthi rebels.
Trafigura Assessing Red Sea Risks
According to Reuters, after firefighters extinguished the blaze on the tanker hit by a Houthi missile off the coast of Yemen on Friday, Trafigura expressed caution about more vessel operations in the Gulf of Aden.
In a statement released on Saturday, Trafigura said: "No further vessels operating on behalf of Trafigura are currently transiting the Gulf of Aden and we continue to assess carefully the risks involved in any voyage, including in respect of security and safety of the crew, together with shipowners and customers."
After a Houthi anti-ship missile hit the Marlin Luanda oil tanker, a US Navy ship and other vessels provided assistance, according to the US military. Trafigura's cautious approach aims to avoid similar incidents caused by the Houthi rebels.
The Iranian-backed group started attacking commercial vessels in the Red Sea on November 19 to show support for the Palestinian militant group Hamas in its fight against Israel.
Since then, more than 27 attacks against ships reportedly happened, which prompted dozens of shipping companies to reroute their vessels or suspend transits through the Red Sea, which is accessed from the Gulf of Aden, to avoid being targeted.
However, many fuel tankers continue to use the route despite the Houthi rebels primarily targeting container ships moving through the Red Sea.
READ ALSO : US Launches Additional Strikes Against Houthis in Yemen as Rebels Hit Greek Ship With Missile in Red Sea
Oil Climbs After Houthi Rebels Attack on Marlin Luanda Tanker
Trafigura has also provided an update on the Marlin Luanda incident, saying that the fire in one cargo tank on the vessel's starboard side was extinguished by Saturday afternoon, and all crew were safe.
According to BBC, the operator of the Marlin Luanda is registered as Oceonix Services Ltd, a UK-registered company. The oil tanker flies under the Marshall Islands flag and is operated on behalf of Trafigura, a multinational trading company.
"The vessel is now sailing towards a safe harbour," Trafigura said in a separate statement, adding that the firefighting effort had been supported by US, French, and Indian navy vessels.
Meanwhile, Reuters reported that oil prices surged 1% on Monday on fuel supply concerns. According to Reuters, Brent crude futures jumped 83 cents to $84.38 a barrel by 2341 GMT after hitting a session high of $84.80, while US West Texas Intermediate crude climbed 78 cents to $78.79 a barrel.
The surge in oil prices reportedly happened following the missile attack on the Marlin Luanda vessel in the Red Sea, and Russia's refined products exports were seen to decrease as some refineries are under repair after recent drone attacks by Ukraine, which has new long-range drones and has begun to target refineries in the western side of Russia.
According to traders and LSEG ship-tracking data, Moscow will likely cut exports on petrochemical feedstock naphtha by around 127,500 - 136,000 barrels per day, or about a third of its total exports, after blazes disrupted operations at refineries in Ust-Luga on the Baltic Sea, and Tuapse on the Black Sea.
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