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Podcast Summary
Chris Robertson, Director of LNG Infrastructure and Maritime Shipping Equity Research at Deutsche Bank Securities, discussed the recent attack and shutdown of the Saudi East West oil pipeline, which was struck by drone attacks launched from inside Iraq and will be offline for several weeks. The pipeline, with a full capacity of 7 million barrels per day and about 5 million barrels earmarked for international export, has been moving an average of 2.6-4 million barrels per day since late August.
In addition to the pipeline attack, Iranian-backed Houthi forces in Yemen have captured strategic islands near Bab al-Mandeb and maintained a blockade against Saudi-connected tankers, leading to Saudi military airstrikes on Houthi positions. Public shipping companies have indicated they are avoiding the Strait of Hormuz region entirely, with reported transportation costs reaching nearly $1 million per day from the Persian Gulf to China.
Chris noted that while ongoing attacks support tanker rates in the region, prolonged disruption to energy infrastructure could put downward pressure on ton-mile demand and rates, though the third quarter appears strong with many companies in position to return cash to shareholders via dividends.
September 14, 2026.
Deutsche Bank
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