Trafigura Conducts Risk Assessment in Red Sea Following Tanker Attack

Smoke rises from the British oil tanker Marlin Luanda as it transits the Gulf of Aden on January 27, 2024. (AFP)
Smoke rises from the British oil tanker Marlin Luanda as it transits the Gulf of Aden on January 27, 2024. (AFP)
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Trafigura Conducts Risk Assessment in Red Sea Following Tanker Attack

Smoke rises from the British oil tanker Marlin Luanda as it transits the Gulf of Aden on January 27, 2024. (AFP)
Smoke rises from the British oil tanker Marlin Luanda as it transits the Gulf of Aden on January 27, 2024. (AFP)

Commodities trader Trafigura said on Saturday it was assessing the security risks of further Red Sea voyages after firefighters put out a blaze on a tanker attacked by Yemen's Houthi group a day earlier.

The tanker was carrying Russian naphtha purchased below the price cap in line with G7 sanctions, a Trafigura spokesperson said on Friday.

"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," a Trafigura statement said.

This implies a potential consideration of navigating through the Cape of Good Hope.

Some shipping companies have suspended transits through the Red Sea, which is accessed from the Gulf of Aden, and taken much longer, costlier journeys around Africa to avoid being attacked by Yemen's Iranian-backed Houthi group.

QatarEnergy, the world's second-largest exporter of liquefied natural gas, stopped sending tankers via the Red Sea earlier this month, citing security concerns.

Over several hours early on Saturday the Marlin Luanda's crew battled a blaze in one cargo tank on the vessel's starboard side. By Saturday afternoon, the blaze was extinguished and all crew were safe.

"The vessel is now sailing towards a safe harbor," Trafigura said, adding that the firefighting effort had been supported by Indian, US, and French navy vessels.

The US military said a US Navy ship and other vessels provided assistance after the Marlin Luanda was hit by a Houthi anti-ship missile.

The Houthis began launching waves of exploding drones and missiles at vessels on Nov. 19 in response to Israel's military operations in Gaza. The Houthi attacks have primarily targeted container vessels moving through the Red Sea. Many fuel tankers have kept using the route.

The Marshall Islands-flagged Marlin Luanda issued a distress call on Friday and reported damage, US Central Command said in a post on X, formerly Twitter. The USS Carney and other coalition ships were providing assistance to the tanker, it said.

This follows reports from companies such as Kuwaiti oil majors BP and Shell that have paused transits through the Red Sea as strikes on commercial vessels by the Houthis have stymied trade between Europe and Asia.

Secretary-General of the International Maritime Organization Arsenio Dominguez has stressed that the IMO supports freedom of navigation and calls for calm in the Red Sea region.

During his meeting with Chairman of the Suez Canal Authority (SCA) Admiral Ossama Rabie on Thursday, the IMO secretary-general explained that the current situation in the Red Sea region imposes many challenges on the global trade movement, the maritime transport market, the Suez Canal, and the ports in the region.

He affirmed that navigation in the canal is still open to everyone “especially in light of the logistical and security challenges faced by the vessels that go around the Cape of Good Hope,” noting that the “Cape route is deemed unsustainable for navigation traffic as it lacks essential services.”



Gold Prices Dip on Profit-taking, US Data in Focus

FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
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Gold Prices Dip on Profit-taking, US Data in Focus

FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo

Gold prices fell about 1% on Thursday as investors booked profits following a three-day rally, with markets eyeing US jobs data for clues on the Federal Reserve's rate path amid rising global trade tensions.

Spot gold, which dipped 0.5% to $2,904.51 an ounce as of 1211 GMT, has gained over 10% year-to-date. It hit a record high of $2,956.15 on February 24.

US gold futures also dropped 0.5% to $2,912.10.

"Gold seems to be experiencing profit-taking as investors closely watch tariff developments with prices trading toward $2,900 ahead of the non-farm payrolls report," Lukman Otunuga, senior research analyst at FXTM, said, Reuters reported.

Market focus is pinned on an escalating global trade war after the US imposed 25% tariffs on imports from Mexico and Canada on Tuesday along with fresh duties on Chinese goods.

Asian stocks rose as investors held out hope that trade tensions could ease after US President Donald Trump exempted some automakers from tariffs for a month.

Investors turn to gold as a safe haven asset when geopolitical and economic uncertainties loom.

"Unless there is a fresh direction catalyst, the current bearish price action may drag gold lower. Should prices break below the $2,900, this may signal further downside toward $2,880," Otunuga said.

The spotlight is on Friday's non-farm payrolls report, which is expected to show a gain of 160,000 jobs for February, economists polled by Reuters said.

Meanwhile, platinum prices were flat at $964.68 per ounce.

"We look for platinum to be undersupplied by 500,000 ounces, or 6.4% of demand, in 2025, keeping the metal in a deficit for a third consecutive year," UBS said in a note.

"Our market deficit should further reduce the above-ground inventories below 3 million ounces and help prices to move to USD 1,100/oz this year."

Spot silver dipped 0.7% to $32.39 an ounce and palladium shed 0.5% to $937.74.