Market Chatter: Saudi Arabia Sends Crude Across Red Sea to Egypt in Mediterranean Work-Around

Supertankers are heading to Egypt's Sidi Kerir port to collect crude of Saudi Arabian origin as vessels avoid direct collections in the Red Sea after threats and attacks by Yemeni Houthi rebels, Bloomberg reported on Tuesday.

The news agency said at least eight very large crude carriers were showing Sidi Kerir as their destination with arrival dates in the next few weeks, according to ship-tracking data.

The article said no tankers at all were observed at the Saudi port of Yanbu in the Red Sea by early on Tuesday though some may have have their transponders switched off. The Houthi threats intensify the crisis caused by Iran's closure of the Strait of Hormuz by closing off Saudi Arabia's simplest backstop to continue exporting crude.

The Saudi crude leaves Yanbu on a tanker and is then delivered to Egypt's Ain Sukhna in the Red Sea before being pumped north to an export hub on the Mediterranean via the Suez-Mediterranean Pipeline, SUMED.

(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.)

US Oil Update: Futures Retreat as Middle East, Black Sea Supply Risks Recede

Crude futures plunged in after-hours trading on Monday, pulling back from a multi-session high, as immediate supply threats across key Middle Eastern and Black Sea crude exporting markets began to ease.Front-month West Texas Intermediate crude futures retreated 8.3% to $81.88 per barrel, while Brent futures plunged by 9% to $87.75/bbl.EBW Analytics strategists said on Monday that the market could return to an oversupplied balance if hostilities continue to ease, though risks remain elevated given the potential for the conflict to broaden.The US has held off on new military strikes against Iranian targets since Friday, following 13 straight nights of attacks aimed at degrading Tehran's ability to disrupt commercial shipping in the Strait of Hormuz.Iran, in response, reportedly signaled that it would stop carrying out attacks on its Gulf neighbors as long as the US also refrains from striking, as Tehran held talks with Oman over the Strait of Hormuz.On Monday, the US Central Command said that Washington's ongoing blockade against Iran has redirected 17 commercial vessels, disabled two, and boarded two to enforce compliance.Earlier on Monday, Iran's Foreign Ministry spokesman, Esmail Baghaei, said that while "it's possible that mediators share messages from the US side about current developments," no formal peace negotiations between Iran and the US are currently taking place.He said talks between Tehran and Muscat have no connection whatsoever with the US and are ongoing.However, Saudi Arabia's Ministry of Defense on Monday intercepted drones from Iraq and Yemen's Houthis targeting its oil facilities.Soojin Kim, research analyst at MUFG, said that although the pause in US military action has eased immediate supply fears, constrained maritime traffic across key export routes suggests geopolitical risk remains elevated.The defense ministry said in a social media post that the Gulf state's air defenses intercepted and destroyed several drones that targeted petroleum facilities in the country's Eastern Province and Riyadh region.On Monday, the Houthis also said they launched drone attacks on Saudi Arabian oil infrastructure in response to incursions by the Gulf state's drones.Yahya Saree, the Houthis' spokesperson, said that several targets in the supply and transport of crude oil from eastern Saudi Arabia to Yanbu were struck by several drones.Saudi Arabia has re-routed its crude output to Yanbu via its east-west pipeline to get around Iranian attacks on shipping in the Hormuz.Meanwhile, traffic through the Hormuz, through which 20% of the world's oil and liquefied natural gas supplies flowed before the conflict, remains restricted, with the latest shipping data showing only 29 confirmed crossings between July 24 and 26.Bab el-Mandeb, by comparison, recorded 100 verified crossings, with 51 vessels entering the Red Sea and 49 exiting.

Saudi Crude Transit Through Bab el-Mandeb Drops Sharply After Houthi Attacks, Kpler Says

Saudi crude exports continue to move through the Bab el-Mandeb Strait despite a sharp drop in transit volumes following Houthi attacks, Kpler said in a Monday note.Before the July 22 attacks, crude cargoes loaded at Saudi Arabia's west coast averaged about 3 million barrels per day through the strait, reflecting regular shipments from Yanbu to Asia.Kpler said the attacks marked an escalation in Houthi targeting of Saudi-linked shipping in the Red Sea.Since July 22, only six Saudi-loaded crude tankers have crossed Bab el-Mandeb, with transit volumes averaging about 1.5 million b/d over the six days after the attacks.The transit volumes have dropped by almost 50%, although Saudi crude exports have not stopped, according to Kpler.Kpler said it has not confirmed any suspension of Saudi crude loadings from Yanbu or vessel crossings through the strait.The firm said the shipping corridor remains open even as traffic continues at a slower pace.

Market Chatter: Saudi Arabia Sends Crude Across Red Sea to Egypt in Mediterranean Work-Around

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US Oil Update: Futures Retreat as Middle East, Black Sea Supply Risks Recede
Crude futures plunged in after-hours trading on Monday, pulling back from a multi-session high, as immediate supply threats across key Middle Eastern and Black Sea crude exporting markets began to ease.Front-month West Texas Intermediate crude futures retreated 8.3% to $81.88 per barrel, while Brent futures plunged by 9% to $87.75/bbl.EBW Analytics strategists said on Monday that the market could return to an oversupplied balance if hostilities continue to ease, though risks remain elevated given the potential for the conflict to broaden.The US has held off on new military strikes against Iranian targets since Friday, following 13 straight nights of attacks aimed at degrading Tehran's ability to disrupt commercial shipping in the Strait of Hormuz.Iran, in response, reportedly signaled that it would stop carrying out attacks on its Gulf neighbors as long as the US also refrains from striking, as Tehran held talks with Oman over the Strait of Hormuz.On Monday, the US Central Command said that Washington's ongoing blockade against Iran has redirected 17 commercial vessels, disabled two, and boarded two to enforce compliance.Earlier on Monday, Iran's Foreign Ministry spokesman, Esmail Baghaei, said that while "it's possible that mediators share messages from the US side about current developments," no formal peace negotiations between Iran and the US are currently taking place.He said talks between Tehran and Muscat have no connection whatsoever with the US and are ongoing.However, Saudi Arabia's Ministry of Defense on Monday intercepted drones from Iraq and Yemen's Houthis targeting its oil facilities.Soojin Kim, research analyst at MUFG, said that although the pause in US military action has eased immediate supply fears, constrained maritime traffic across key export routes suggests geopolitical risk remains elevated.The defense ministry said in a social media post that the Gulf state's air defenses intercepted and destroyed several drones that targeted petroleum facilities in the country's Eastern Province and Riyadh region.On Monday, the Houthis also said they launched drone attacks on Saudi Arabian oil infrastructure in response to incursions by the Gulf state's drones.Yahya Saree, the Houthis' spokesperson, said that several targets in the supply and transport of crude oil from eastern Saudi Arabia to Yanbu were struck by several drones.Saudi Arabia has re-routed its crude output to Yanbu via its east-west pipeline to get around Iranian attacks on shipping in the Hormuz.Meanwhile, traffic through the Hormuz, through which 20% of the world's oil and liquefied natural gas supplies flowed before the conflict, remains restricted, with the latest shipping data showing only 29 confirmed crossings between July 24 and 26.Bab el-Mandeb, by comparison, recorded 100 verified crossings, with 51 vessels entering the Red Sea and 49 exiting.

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Saudi crude exports continue to move through the Bab el-Mandeb Strait despite a sharp drop in transit volumes following Houthi attacks, Kpler said in a Monday note.Before the July 22 attacks, crude cargoes loaded at Saudi Arabia's west coast averaged about 3 million barrels per day through the strait, reflecting regular shipments from Yanbu to Asia.Kpler said the attacks marked an escalation in Houthi targeting of Saudi-linked shipping in the Red Sea.Since July 22, only six Saudi-loaded crude tankers have crossed Bab el-Mandeb, with transit volumes averaging about 1.5 million b/d over the six days after the attacks.The transit volumes have dropped by almost 50%, although Saudi crude exports have not stopped, according to Kpler.Kpler said it has not confirmed any suspension of Saudi crude loadings from Yanbu or vessel crossings through the strait.The firm said the shipping corridor remains open even as traffic continues at a slower pace.