Oil Producers Show Concern on Global Tanker Shortage amid Persisting Red Sea Crisis

Shaikh Nawaf al-Sabah, CEO of Kuwait Petroleum Corporation (KPC), stated via CNBC that the world could encounter a tanker fleet shortage if the crisis in the Red Sea carried on for another six months.

Since November 2023, the livelihood of commercial shipping companies has been a struggle, as Houthi militants attacked tankers in support of Palestinians in the link to the war in Gaza, which forced shipping fleets and tankers to turn their helms to the Cape of Good Hope and caused the cost and time for transportation to increase.

Al-Sabah elaborated that KPC followed its strategy and continued shipping through the Red Sea by picking proper routes on a daily basis, while also stating that the company was satisfied to have completed its deliveries to clients without any issues.

However, the concern was raised as he implied that not every oil producer or tanker was as well-prepared as KPC.

Meanwhile, Chevron CEO Michael Wirth stated that the tension in the Middle East was tenuous and that the situation could go in any direction. He affirmed that, with the current circumstances, Chevron would not move its ships to the Red Sea.