Bypassing Hormuz Pays Off! Saudi Oil Exports Recover Over Half, Red Sea Tankers Queue Up

Despite the impact of the Iran war, Saudi Arabia, the world’s largest oil exporter, has transported more than half of its normal export volume through pipelines, indicating that the country’s emergency plan to bypass the Strait of Hormuz is beginning to take effect.

With the near closure of the Strait of Hormuz, Saudi Arabia is rerouting its oil through a 1,200-kilometer (746-mile) pipeline (the East-West Oil Pipeline) to the western port of Yanbu, located on the Red Sea coast.

Meanwhile, Saudi Arabia has quickly assembled a large fleet of oil tankers heading to the Red Sea to load crude oil, currently gathering around the port.

According to vessel tracking data compiled by media, over the past five days, Yanbu’s daily export volume has averaged about 4.19 million barrels. This accounts for a significant portion of Saudi Arabia’s pre-war total exports (about 7 million barrels), and is much higher than the approximately 1.4 million barrels per day previously transported through this port.

About one-fifth of the world’s oil is transported through the Strait of Hormuz, a narrow passage into the Persian Gulf. As this critical waterway remains under blockade and oil storage capacity is exhausted, Gulf oil-producing countries are forced to cut production. The International Energy Agency warns that this conflict is causing the most severe supply disruptions in oil market history.

Saudi Arabia is the only oil-producing country with a significant alternative route. The UAE has a pipeline route to the Gulf of Oman, but its transportation flow is vulnerable to disruptions—Fujairah Port, which the country relies on, has been forced to suspend loading operations multiple times due to drone attacks.

As Saudi Arabia urgently reroutes its oil exports, a long queue of oil tankers has formed along the Red Sea coast. At least 32 very large crude carriers (VLCCs) and Suezmax tankers are waiting to load near Yanbu, with more ships still en route.

This month, Saudi Arabia’s record for loading oil at Yanbu was 4.65 million barrels in a single day. This level has been reached three times, while other days saw lower loading volumes.

Short-term loading data can fluctuate significantly, but Saudi Arabia has stated that it plans to increase the volume of cargo at Red Sea ports for overseas buyers and has offered long-term customers options to receive supplies from Yanbu.

(Article source: Cailian Press)