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Market Chatter: Houthi Warning Clouds Saudi Red Sea Oil Export Route

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Saudi Arabia's record crude shipments through the Red Sea face fresh risks after Yemen's Houthis threatened to block the kingdom's exports, according to a Bloomberg report on Tuesday.

Saudi Arabia exported a record 5.9 million barrels per day from Yanbu terminals in the week through July 17 before exports slipped to 5.5 million b/d in the seven days through July 20.

The Houthis said the blockade responds to what they describe as Saudi Arabia's siege of Yemen's capital, Sana'a. The group also cautioned shipowners against calling at Saudi ports.

Despite the Houthi warnings, tankers continue loading cargoes at Saudi Arabia's Red Sea ports as a Saudi-led coalition said Monday it has launched measures to protect shipping through the Bab el-Mandeb Strait. Saudi Arabia's Ministry of Energy did not immediately reply 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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