Maersk Pauses Red Sea Sailings after Houthi Attack

(FILES) Containers of Danish shipping and logistics company Maersk are seen in Copenhagen, Denmark, on September 14, 2023. (Photo by SERGEI GAPON / AFP)
(FILES) Containers of Danish shipping and logistics company Maersk are seen in Copenhagen, Denmark, on September 14, 2023. (Photo by SERGEI GAPON / AFP)
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Maersk Pauses Red Sea Sailings after Houthi Attack

(FILES) Containers of Danish shipping and logistics company Maersk are seen in Copenhagen, Denmark, on September 14, 2023. (Photo by SERGEI GAPON / AFP)
(FILES) Containers of Danish shipping and logistics company Maersk are seen in Copenhagen, Denmark, on September 14, 2023. (Photo by SERGEI GAPON / AFP)

Iranian-backed Houthi militants attacked a Maersk container vessel with missiles and small boats, prompting the company to pause all sailing through the Red Sea for 48 hours, Maersk said on Sunday.

The crew of the Maersk Hangzhou crew was safe and there was no indication of fire onboard the vessel, which was fully maneuverable and continued its journey north to Port Suez, Maersk said.

The United States launched Operation Prosperity Guardian on Dec. 19, saying more than 20 countries had agreed to participate in the efforts to safeguard ships in Red Sea waters near Yemen.
In response, Maersk said on Dec. 24 it would resume sailings through the Red Sea. However, attacks have continued and US allies have proven reluctant to commit to the coalition, with nearly half not declaring their presence publicly.
Maersk, one of the world's major cargo shippers, said on Sunday it would delay all transits through the area for 48 hours, after the Maersk Hangzhou was struck by a missile at around 1730 GMT on Saturday 55 nautical miles southwest of Al Hodeidah, Yemen.
A US warship shot down another two anti-ship ballistic missiles fired from Houthi-controlled areas in Yemen, according to the US Central Command (CENTCOM).
Later at around 0330 GMT on Sunday, the same ship was attacked by Houthi militants in four small boats. An attempt by the attackers to board the vessel was averted after its security team and helicopters from the USS Eisenhower and USS Gravely, responding to distress calls, returned fire, according to statements by Maersk and CENTCOM.
The helicopters sank three of the militant boats, with no survivors, while the fourth boat fled the area, CENTCOM said in the statement.
The Singapore-flagged Maersk Hangzhou with capacity to carry 14,000 containers was en route from Singapore.



OPEC Again Cuts 2024, 2025 Oil Demand Growth Forecasts

The OPEC logo. Reuters
The OPEC logo. Reuters
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OPEC Again Cuts 2024, 2025 Oil Demand Growth Forecasts

The OPEC logo. Reuters
The OPEC logo. Reuters

OPEC cut its forecast for global oil demand growth this year and next on Tuesday, highlighting weakness in China, India and other regions, marking the producer group's fourth consecutive downward revision in the 2024 outlook.

The weaker outlook highlights the challenge facing OPEC+, which comprises the Organization of the Petroleum Exporting Countries and allies such as Russia, which earlier this month postponed a plan to start raising output in December against a backdrop of falling prices.

In a monthly report on Tuesday, OPEC said world oil demand would rise by 1.82 million barrels per day in 2024, down from growth of 1.93 million bpd forecast last month. Until August, OPEC had kept the outlook unchanged since its first forecast in July 2023.

In the report, OPEC also cut its 2025 global demand growth estimate to 1.54 million bpd from 1.64 million bpd, Reuters.

China accounted for the bulk of the 2024 downgrade. OPEC trimmed its Chinese growth forecast to 450,000 bpd from 580,000 bpd and said diesel use in September fell year-on-year for a seventh consecutive month.

"Diesel has been under pressure from a slowdown in construction amid weak manufacturing activity, combined with the ongoing deployment of LNG-fuelled trucks," OPEC said with reference to China.

Oil pared gains after the report was issued, with Brent crude trading below $73 a barrel.

Forecasts on the strength of demand growth in 2024 vary widely, partly due to differences over demand from China and the pace of the world's switch to cleaner fuels.

OPEC is still at the top of industry estimates and has a long way to go to match the International Energy Agency's far lower view.

The IEA, which represents industrialised countries, sees demand growth of 860,000 bpd in 2024. The agency is scheduled to update its figures on Thursday.

- OUTPUT RISES

OPEC+ has implemented a series of output cuts since late 2022 to support prices, most of which are in place until the end of 2025.

The group was to start unwinding the most recent layer of cuts of 2.2 million bpd from December but said on Nov. 3 it will delay the plan for a month, as weak demand and rising supply outside the group maintain downward pressure on the market.

OPEC's output is also rising, the report showed, with Libyan production rebounding after being cut by unrest. OPEC+ pumped 40.34 million bpd in October, up 215,000 bpd from September. Iraq cut output to 4.07 million bpd, closer to its 4 million bpd quota.

As well as Iraq, OPEC has named Russia and Kazakhstan as among the OPEC+ countries which pumped above quotas.

Russia's output edged up in October by 9,000 bpd to about 9.01 million bpd, OPEC said, slightly above its quota.