Oil & Energy
Saudi Arabia Maintains Crude Exports Despite Red Sea Shipping Threats, Kpler Says
Saudi Arabia continues exporting crude despite lower Red Sea transit volumes after Houthi threats, while alternative routes help keep oil flowing, Kpler said in a Wednesday note.The Houthis announced a maritime embargo on July 20 targeting vessels serving Saudi ports, calling it retaliation for restrictions on Yemen's ports and airports and an attack on Sanaa airport, according to the note.The dispute dates back to Yemen's civil war. The Houthis seized Sanaa in 2014, Saudi Arabia led a military coalition in 2015, and a 2022 truce eased fighting without ending the conflict, Kpler said.The Houthis have repeatedly targeted Saudi energy infrastructure, including the East-West Pipeline and facilities in Jizan, Jeddah and Yanbu. Their latest threat focuses on ships serving Saudi ports instead of vessel flags, the note said.Saudi Arabia continued shipping crude through Bab el-Mandeb during the week after the Houthi embargo despite lower transit volumes, after shifting exports from eastern terminals to Red Sea facilities following the effective closure of the Strait of Hormuz, Kpler said.Yanbu crude exports reached 4.18 million barrels per day in April, 3.77 million b/d in May and 4.14 million b/d in June, compared with a pre-war 2025 average of 750,000 b/d. The rerouting replaced about 3.39 million b/d of eastern exports, Kpler said.The note said Ras Tanura averaged 5.4 million b/d of crude loadings in 2025, while the increased Red Sea shipments allowed Saudi Arabia to bypass about 64% of its traditional Gulf export volumes.Yanbu Crude Terminal and Muajjiz Terminal, with combined storage capacity of 24 million barrels, have maintained inventories near 12 million barrels since mid-March, reflecting sustained loading activity, Kpler said.Inventories climbed to about 17 million barrels on July 12 before declining by over 2 million barrels by July 24. Kpler said the drawdown confirmed exports resumed after the July 20 Houthi announcement.Egypt's 2.5 million b/d Sumed pipeline connects Ain Sukhna on the Red Sea with Sidi Kerir on the Mediterranean, allowing Middle East crude to bypass the Suez Canal, the note said.Because very large crude carriers can transit the Suez Canal with only about 1 million barrels onboard, they typically discharge part of their cargo at Ain Sukhna before reloading it at Sidi Kerir through the pipeline, Kpler said.Kpler identified vessels using that route after the recent escalation. Sidi Kerir crude loadings rose about 250,000 b/d to 1.3 million b/d last week, the highest level since 2.2 million b/d during the opening week of the US-Iran war, excluding a brief rise to 1.38 million b/d in late March.The report estimated about 850,000 b/d of oil, including 766,000 b/d of crude, discharged at Ain Sukhna in 2025, implying more than 1.5 million b/d crossed through the broader system.The remaining pipeline capacity could move another 1.7 million b/d, or about 3.4 million b/d after cargo splitting.Kpler estimated crude inventories at Ain Sukhna at about 14 million barrels during the week beginning July 20, representing 69% utilization and offering another measure of crude entering the Sumed system.Despite the alternative route, Kpler said practical constraints remain. Sumed's historical throughput peaked at 1.77 million b/d in 2016, while shipping Saudi crude to Asia through the Suez Canal roughly doubles voyage times, reducing trade economics and threatening supplies for refiners east of Suez.
