Saudi Arabia using Red Sea port to transport oil after closure of Strait of Hormuz
Saudi Arabia is rerouting millions of barrels of
crude oil to the port of Yanbu
on the Red Sea to maintain global supply, Bloomberg reported. The move comes as
the Strait of Hormuz
remains closed due to ongoing tensions with Iran, while storage tanks in the
region approach full capacity.
Tanker-tracking data shows five very large crude carriers (VLCCs) loaded at Yanbu in early March, carrying a combined total of around 10 million barrels. This has tripled daily shipments compared to February, with current exports averaging 2.5 million barrels per day.
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Saudi Arabia usually ships most of its crude
from Ras Tanura on the
Arabian Gulf, but the conflict has disrupted normal operations, preventing oil
from leaving the Gulf for international markets.
The Kingdom’s large storage capacity and the East-West pipeline allow Saudi Arabia to divert crude to the Red Sea, providing a safety buffer for global energy markets. Saudi Aramco confirmed it is sending export volumes from eastern production areas through pipelines to Red Sea ports, which could theoretically handle most of the country’s daily exports of roughly 7 million barrels.
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The Strait closure has pushed Brent crude prices above $80 per barrel, a 15 percent rise since Friday, while European gas prices have also surged following production cuts by Qatar. Iraq has already halted some output due to full storage tanks, and analysts warn other Gulf producers, including Kuwait, may face similar issues within two weeks.
Source: Alarabiya
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