Shipowners are shuttling Saudi Arabian crude away from the Red Sea's Yanbu terminal after Houthi militants began targeting tankers loading there. The rerouted cargoes now move north to Ain Sukhna in Egypt, and Saudi crude exports via the northern route have risen about a third since July 20, to roughly 1.1 million barrels a day.
Shipowners shift to the northern route
Sinokor Group, Dynacom and DHT Management are among the shipowners moving Saudi crude out of the Red Sea via a safer northern path, after Yemen's Houthis started targeting vessels loading at the Yanbu export terminal. State-owned Saudi Aramco has responded by exporting more crude oil from Mediterranean ports such as Sidi Kerir.
Vessels shuttle cargoes from Yanbu to Ain Sukhna, where the oil is discharged and piped north for pickup by Aramco's customers. The approach mirrors a similar move the United Arab Emirates made to route its oil out of the Persian Gulf through the Strait of Hormuz.
Exports hold up despite the blockade
The shuttling tankers, together with Saudi-controlled and commercial vessels making one-way trips out of the Red Sea via the north, have helped the OPEC producer sustain flows and keep global markets supplied. Saudi crude exports via the northern Red Sea route have increased by about a third since the Houthis announced their blockade on July 20, reaching about 1.1 million barrels a day, according to data from Kpler.
At least four tankers have completed the Yanbu-to-Ain Sukhna journey twice or more, transferring about 16.3 million barrels of crude in total, according to ship-tracking data compiled by Bloomberg. However, the detour comes at a cost: shipments via the Mediterranean must sail around southern Africa to reach Aramco's main customers in Asia, adding weeks to the journey.
Yanbu has been central to Saudi Arabia's efforts to bypass the Strait of Hormuz, with the kingdom rerouting Persian Gulf barrels through the East-West pipeline early in the war to keep oil flowing. Still, some shipowners and charterers continue to risk the shorter passage through the Bab el-Mandeb Strait near Yemen.
Source: Rigzone
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