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Saudi Arabia Lifts Yanbu Flows to 4 Million b/d, Still Below Target, Bloomberg Analysis Says

-- Saudi Arabia routed about 4 million barrels per day through Red Sea terminals in April, falling short of targets despite bypassing Hormuz disruptions, according to a Bloomberg analysis on Friday.

Flows from Yanbu averaged roughly 4 million b/d in the first three weeks of April, marking a fivefold jump from pre-conflict levels but reaching only about 80% of intended volumes, the analysis said.

Investors are monitoring West Coast export routes closely after Iran effectively shut the Strait of Hormuz following US and Israeli strikes in late February, the analysis added.

Yanbu now serves as the primary alternative corridor for crude shipments, offering the largest workaround to disruptions affecting the key Gulf shipping lane, according to the analysis.

Actual export volumes may exceed reported figures, as some vessels are likely to have disabled tracking systems, while standard estimates may miss higher volumes when ships load at levels above typical levels.

The East-West pipeline links Gulf oil fields to the Red Sea over 746 miles and can carry up to 7 million b/d, though around 2 million barrels remain allocated for domestic demand, the analysis said.

Throughput briefly reached full capacity in late March, pushing exports to about 5 million b/d, though those elevated levels lasted only a short period, the analysis added, citing a source familiar with the matter.

A drone attack on one of 11 pumping stations temporarily cut throughput by roughly 700,000 barrels per day, but operators quickly restored operations, according to the analysis.

Saudi Arabia previously routed cargoes through Egypt for onward delivery to Europe and North America, but it now sends most shipments directly to Asian markets.

Tankers accumulated rapidly near Yanbu after Hormuz disruptions, with at least 40 vessels waiting offshore for redirected supplies, the analysis said.

By Tuesday, more than 20 very large crude carriers remained anchored in the area, many linked to Saudi Arabia's national shipping fleet, the analysis added.

Available tanker capacity remains ample to support sustained higher export volumes from the Red Sea despite ongoing logistical shifts, according to the analysis.

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