Suez Canal: Is an Urgent Switch to Electric Necessary?

The surge in tensions in the Red Sea and the rerouting of tankers cast a shadow over the threat of a new spike in fuel prices.

Any excuse has always been good for brokers to speculate on rising oil prices. But in this case, it’s more than just an excuse: tensions in the Red Sea are disrupting Europe’s fuel supply.

Tesla and Volvo, in the automotive industry, have already decided to put their factories on temporary shutdown, due to a shortage of spare parts from China. This situation is expected to multiply.

Now, for safety reasons, cargo ships and oil tankers that are not escorted by American or French military frigates prefer to circumvent Africa via the Cape of Good Hope. This results in longer routes, increased delivery times, and higher costs.

This slowdown in supplies to Europe will inevitably cause the Brent price to rise on the stock exchange… and consequently at the pump. Mobiwisy highly recommends filling up as soon as possible, to take advantage of still reasonable prices, but also simply to find fuel. If panic sets in, gas stations will be overwhelmed.

On the stock market, the Brent barrel price increased from $75 to $80 between January 8 and 12, 2024. A rise of 6.6%. Is this just the beginning now that the United States is starting targeted military actions in Yemen?

The other option is to accelerate the switch to electric vehicles. French and European production has recovered to high levels, and shortages are gradually diminishing each day. The ultimate game-changing argument is that the eco bonus will soon drop from 5000 to 4000 euros, or very likely disappear in the coming months. Germany has already taken the leap, because the burden on public finances is enormous to bear.

If electric appeals to you, don’t wait!

READ ALSO: Price drop and factory closure, Tesla stock plunges