Saudi Aramco explores alternative Asia crude routes as Red Sea and Hormuz risks rise

Saudi Aramco is reshaping September crude delivery options for Asian buyers as security threats in the Red Sea and Strait of Hormuz disrupt normal export routes. Traders said most processors in China, Taiwan and India were told to lift September supplies from Yanbu on Saudi Arabia's Red Sea coast, while Japanese and South Korean refiners were directed to Egypt's Sidi Kerir terminal via the SUMED pipeline; at least two refiners asked to switch Yanbu cargoes to Sidi Kerir, and one buyer may skip its monthly allocation because the Mediterranean-to-Asia route around Africa is much more expensive. In a separate development reported on August 17, Aramco was also in talks with select Asian refiners to supply Arab Medium and Arab Heavy crude through ship-to-ship transfers off Fujairah in the UAE, outside the Strait of Hormuz, in a model similar to ADNOC's. The company declined to comment, and it remains unclear how crude would be moved to Fujairah. The moves underscore how Houthi attacks, higher insurance costs, tanker shortages and broader regional conflict are forcing buyers and Saudi Arabia to choose between riskier routes, costlier logistics and potentially lower purchases.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.