Commodities

The Price of Diesel in Europe Is Being Boosted by Red Sea Shipping Chaos

Supply also subject to maintenance work at oil refineries
Increased cost of shipping pressures Europe’s supply chain

The SKS Doyles crude oil tanker moves along the Suez Canal towards Ismailia in Suez, Egypt, on Dec. 21, 2023. A steep decline in the number of tankers entering a vital Red Sea conduit suggests that attacks on ships in the area are further disrupting a key artery of global trade. — The SKS Doyles crude oil tanker moves along the Suez Canal towards Ismailia in Suez, Egypt, on Dec. 21, 2023. A steep decline in the number of tankers entering a vital Red Sea conduit suggests that attacks on ships in the area are further disrupting a key artery of global trade.
Photographer: Stringer/Bloomberg

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By Jack Wittels

January 31, 2024 at 1:27 PM UTC

This article is for subscribers only.

Attacks by Houthi militants on merchant shipping are boosting the price of diesel in Europe.

Since the start of the year, the wholesale cost of fuel delivered into northwest Europe has jumped by 12% to just over $116 a barrel, according to figures from General Index compiled by Bloomberg. Red Sea trade disruption isn’t the only factor, but a hike in freight costs due to Houthi attacks is contributing.