Saudi Aramco has notified Asian refineries that they can soon restart crude oil loadings from the Red Sea port of Yanbu. This follows a significant disruption caused by the closure of the East-West Pipeline on September 10, after it was targeted by Iraqi drone attacks. Prior to this notification, crude loading at Yanbu had almost entirely ceased.
The pipeline shutdown has particularly impacted European customers, with at least two European refineries being informed that they will not receive their full contractual allocations for October. This indicates a strategic prioritization for Asian markets as operations gradually resume.
In response to the pipeline closure, Saudi Arabia had previously shifted its export strategy. On September 21, observed oil loadings from inside the Persian Gulf saw a jump, with supertankers capable of carrying 14 million barrels observed at export installations, the highest since June. This shift aimed to redirect exports through the Strait of Hormuz. Additionally, by September 16, Saudi Aramco had reportedly sold approximately 20 million barrels to Asian refiners for prompt pickup from outside the Strait of Hormuz, including buyers from Chinese state-owned and independent processors, and other East Asian importers.
