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Market Chatter: Asian Buyers Seek to Shift Aramco Crude Loadings From Red Sea to Mediterranean

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At least two Asian refiners have asked Saudi Aramco to divert the loading of their September oil cargoes to Egypt's Mediterranean port of Sidi Kerir, instead of Yanbu on the Red Sea, following recent Houthi attacks, Bloomberg reported Monday, citing sources.

However, higher shipping costs from Sidi Kerir to Asia, with vessels having to circumnavigate Africa, may prompt at least one buyer to skip its monthly allocation under the long-term contract, sources told the news agency. Annual contracts with Aramco allow flexibility on when to lift the purchased volumes.

Aramco has reportedly diverted Japanese and South Korean refiners to the Egyptian port for their cargoes, while directing Chinese, Taiwanese, and Indian buyers to load oil from Yanbu. Following disruptions in the Strait of Hormuz, the company had previously utilized only the Yanbu port for Asian exports.

Aramco did not immediately respond to' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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