Saudi Arabia is increasingly relying on the Strait of Hormuz for its oil exports, a route it had actively sought to avoid for months. This shift comes after its alternative Red Sea bypass routes were disrupted by recent attacks. The country's state-controlled oil giant, Saudi Aramco, is loading more oil onto tankers in the Persian Gulf and sending them through Hormuz.
Aramco has informed several Asian customers, who represent its most crucial oil market, to collect their shipments just outside the strait, off the coast of Oman. This indicates a strategic change in Saudi Arabia's export logistics following the challenges faced with its alternative routes.
The East-West oil pipeline, a key alternative route that transports crude from Saudi Arabia's eastern oil fields to its Yanbu port on the Red Sea, was shut down on September 13 due to attacks. This disruption halted crude loadings at Yanbu and forced Aramco to cancel some crude cargo sales to European clients. As a result, Saudi Arabia has increased sales to Asia of crude loaded at its eastern ports within the Strait of Hormuz. This situation underscores the kingdom's limited options in maintaining its oil exports amidst geopolitical tensions and infrastructure challenges.
