Saudi oil exports fall to 3.2 million barrels a day, lowest in 13 years

  • Saudi Arabia rerouted oil exports after Iran closed the Strait of Hormuz.
  • 3.2 million barrels a day was Saudi Arabia’s lowest export level in at least 13 years.
  • Saudi officials said the kingdom would retaliate after Houthis injured 73 civilians.

Saudi Arabia’s oil exports fell to 3.2 million barrels a day last month, their lowest level in at least 13 years, as the kingdom reroutes shipments amid escalating conflict. After Iran closed the Strait of Hormuz following the start of the U.S. war with Iran, Saudi Arabia increased pipeline exports to the Red Sea. When the Iran-backed Houthi militia in Yemen announced a Red Sea blockade, the kingdom shifted again, sending tankers north toward a pipeline near the Suez Canal. The Mediterranean route costs more and adds weeks to voyages to Asia, where most Saudi customers are located. Saudi officials said the kingdom would retaliate after Houthis injured 73 civilians and struck energy facilities in southern Saudi Arabia. Only two Saudi cargoes passed through the Bab al-Mandab Strait toward the Red Sea in the past week, according to Kpler. Shipping analyst Peter Sand of Xeneta said confidence among shipping companies in the Red Sea route had clearly deteriorated. The disruptions come as oil prices surpass $100 a barrel and place additional pressure on a supply system important to global energy-price stability.

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