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Saudi Arabia Reroutes Oil Exports North to Avoid Red Sea Houthi Threats

Created at 21 Aug · 2:51 PM1 source↑ Market-relevant
IN SHORT

Saudi Arabia has increased crude oil exports from Egypt's Mediterranean port of Sidi Kerir by approximately 33% in the past month. This shift aims to bypass threats from Houthi militants in the southern Red Sea and Bab el-Mandeb Strait, rerouting oil via Egypt's SUMED pipeline.

Key Numbers

33%increase in crude oil exports from Sidi Kerir
1.1 millionbarrels per day shipped via northern Red Sea route
16 millionbarrels of oil shipped in recent weeks via new route
one monthadded transit time for Asian buyers

Who's Involved

Saudi Arabia
boosting crude oil exports via Egypt to avoid Red Sea threats
Aramco
state oil giant facilitating the rerouting of crude oil
Houthi group
Iran-aligned militants threatening Saudi oil shipments
Sinokor
Norwegian shipping operator assisting Aramco
DHT Management AS
Norwegian shipping operator assisting Aramco
Dynacom
Greek shipping operator assisting Aramco

↳ Why This Matters

The rerouting of Saudi oil exports highlights the growing geopolitical risk in the Red Sea and its impact on global energy supply chains, potentially affecting delivery times and costs for major consumers in Asia.

Key facts

  • Saudi Arabia has increased crude oil exports from Sidi Kerir, Egypt, by 33% in the last month.
  • The rerouting is a response to threats from Houthi militants in the southern Red Sea.
  • Oil is being shuttled from Yanbu port on the Red Sea to Ain Sukhna, then via the SUMED pipeline to Sidi Kerir.
  • Shipments via this northern route have risen to 1.1 million barrels per day.
  • The new route adds approximately one month to delivery times for Asian buyers.

Saudi Arabia has significantly increased its crude oil exports from Egypt's Mediterranean port of Sidi Kerir, with shipments rising by approximately 33% in the month following Houthi threats to Red Sea shipping lanes. The Saudi state oil giant Aramco is shuttling crude from its Yanbu port on the Red Sea northward to Egypt's Ain Sukhna port. From there, the oil is transported via the SUMED onshore pipeline to Sidi Kerir on the Mediterranean Sea, enabling it to bypass the Bab el-Mandeb Strait and the southern Red Sea, areas of heightened risk due to Houthi activity.

International shipping companies, including Norway's DHT Management AS and Greece's Dynacom, are reportedly assisting Aramco in this rerouting effort. Data indicates that this new route has boosted shipments via the northern Red Sea to about 1.1 million barrels per day. At least four tankers have made multiple journeys, transporting over 16 million barrels of oil recently. This diversion, however, adds nearly a month to the delivery time for Saudi crude destined for Asian refiners, some of whom have requested to receive their cargoes at Sidi Kerir due to the increased shipping safety concerns.

Frequently asked questions

Saudi Arabia is rerouting its oil exports to avoid threats from Houthi militants in the southern Red Sea and the Bab el-Mandeb Strait, which pose risks to shipping safety.

Crude oil is shuttled from Yanbu port on the Red Sea to Ain Sukhna, then pumped via the SUMED pipeline to Sidi Kerir on the Mediterranean Sea.

Shipments via the northern Red Sea route have increased by about a third, reaching 1.1 million barrels per day.

The new route adds nearly a month to the transit time for Saudi oil supply to reach refiners in Asia.

What Happens Next

01Asian refiners may continue to receive crude oil cargoes at Sidi Kerir.
02Monitoring of Houthi activity in the southern Red Sea and Bab el-Mandeb Strait will continue.
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How It Developed

Saudi Arabia began shuttling crude oil from its Red Sea port of Yanbu north toward Egypt.
The oil is discharged at Ain Sukhna and pumped through the SUMED pipeline to Sidi Kerir on the Mediterranean.
This new route aims to avoid threats from Houthi militants in the southern Red Sea.
Shipments via the northern Red Sea route increased by about a third to 1.1 million barrels per day.
At least four tankers have made the Yanbu to Ain Sukhna journey multiple times, shipping over 16 million barrels.
The rerouting adds nearly a month to the transit time for Asian buyers.
Some Asian refiners have requested to pick up crude cargoes at Sidi Kerir due to shipping safety risks.

Sources

T1
Saudi Oil Exports from Mediterranean Soar with Shuttles North to Avoid HouthisOilPrice.com

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