Saudi Oil Exports Increase by 2.4 Million Barrels per Day from Sidra

Saudi oil exports are shifting to a northern route that avoids the Bab-el-Mandeb Strait at the southern end of the Red Sea. Following the Houthi declaration of a maritime blockade, the share of the Suez-Mediterranean (SUMED) pipeline route, which passes through Ain Sokhna and Sidra in Egypt, has increased. In the first week of August, the volume of oil departing from Sidra was recorded at 2.4 million barrels per day, of which approximately 700,000 barrels were headed for Asia. The volume of Saudi oil passing through Bab-el-Mandeb has nearly dropped to zero. The oil cargoes from Sidra are not exclusively Saudi oil, and there is a reallocation of routes to reduce logistics risks. However, the alternative route takes about 40 days longer round trip, which increases vessel turnaround times and freight burdens. The response from the Asian market has been limited, with Asian customers, including China, finding the long voyages and high freight costs burdensome. Reuters reported that all loading at Yanbu from August 12 to 18 was conducted under 'dark' conditions. Saudi Aramco continues to utilize the East-West pipeline to secure network flow, and future flows will need to consider freight rates, sailing times, and gaps in vessel tracking.

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