Saudi Arabia announced that state-owned Saudi Aramco will cut its oil exports to Asia again in April, shifting all shipments to the Port of Yanbu on the Red Sea. The reason for this decision is the de facto closure of the Strait of Hormuz, one of the most critical routes for global crude trade, currently affected by rising tensions in the region.
Arab Light, Aramco’s flagship crude, will be the only type of oil Asian customers receive during April. According to sources cited by Reuters, these shipments will only depart from Yanbu, moving away from the traditional loading point in the Persian Gulf.
The Strait of Hormuz, blocked by the Iran-Israel conflict
The conflict between Iran, Israel, and the United States has seriously complicated maritime transit through Hormuz due to the selective control Iran is exercising over the passage of vessels, granting permits based on political criteria. Although the Bab el-Mandeb Strait has not been blocked, its history of attacks by the Houthis, Iranian allies, keeps the shipping industry on alert.
As a direct consequence, Saudi production has been severely adjusted. In March, export volume fell to 4.355 million barrels per day, a figure well below the 7.1 million recorded in February, and projections suggest that production will remain limited in April.
Aramco’s new logistical epicenter
Given this scenario, the Port of Yanbu has become the hub of the Saudi operation, as Aramco has increased its shipments via this route, hoping to reach a record 3.8 million barrels per day this month. However, even this unprecedented volume does not compensate for the drop caused by the blockade in Hormuz.
As a result, Asian refineries are being forced to seek new suppliers to ensure the continuity of their operations, as supplies become increasingly restricted and logistical costs continue to rise.
Regional consequences and short-term outlook
The impact is not limited to Saudi Arabia; the forced redesign of maritime routes affects the balance of the global energy market.
For now, Saudi Arabia is demonstrating a formidable capacity for adaptation, but the logistical limits are clear. If the conflict spreads, new supply chain disruptions could arise, forcing a redefinition of not only routes but also global energy alliances.
Source: OilPrice