About half the world's oil production is moved by tankers on fixed maritime routes, according to Reuters. The blockage of a chokepoint, even temporarily, can lead to substantial increases in total energy costs and thus, these chokepoints are crucial to global energy security. While Hormuz remains the largest chokepoint (and along with Bab el-Mandeb explains why Yemen matters so much).
And while Yemen is key for The Strait of Hormuz...
With Bab el-Mandeb even more specifically problematic if Yemen tensions get too extreme... Related: Who Benefits Most From Cheap Oil?
...it is China's growing presence near The Strait of Malacca that is perhaps most worrisome for the global energy order... Related: Oil Markets Blow Yemen Crisis Out Of Proportion
and here's why...
Related: Forget Rig Counts And OPEC, Media Bias Is Driving Oil Down
More Top Reads From Oilprice.com:
- The Most Challenging Oil And Gas Projects In The World
- Beyond Iran And Pakistan: 7 Nuclear Wannabes
- Three Triggers That Will Send Oil Crashing Again