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Market Chatter: Shipowners Take Safer Northern Red Sea Route for Saudi Crude Amid Houthi Attacks

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Shipowners are opting for the safer northern route to move Saudi Arabian crude from the Red Sea amid attacks by the Yemen-based Houthis on the country's exports through the Bab el Mandeb strait in the south, Bloomberg reported Friday.

Saudi energy giant Saudi Aramco has increased oil exports through Mediterranean Sea ports such as Sidi Kerir after Houthi strikes on ships loaded at Yanbu. Vessels operated by South Korea's Sinokor, Greece's Dynacom and Norway's DHT Management AS have transported cargoes from Yanbu to Ain Sukhna over the last one month, the report said. Oil is unloaded at Ain Sukhna before being piped north.

Since July 20, when the Houthis announced their blockade, Saudi Arabia's crude exports through northern Red Sea have risen by almost a third to around 1.1 million barrels a day, the report said, citing Kpler data. About 16.3 million barrels were transferred by at least four tankers that made the Yanbu to Ain Sukhna journey twice or more, according to Bloomberg ship-tracking data.

Moving Saudi crude through the Mediterranean requires tankers to sail around southern Africa to reach Asian customers, adding weeks to the journey, the report added.

has reached out to Saudi Aramco, Dynacom, and DHT Management for comments. Sinokor could not be immediately reached.

(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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