Saudi Red Sea Crude Exports Drop 41% Since March Peak
Since reaching a peak of 4.07 million barrels per day (bpd) in March, Saudi Arabia's crude exports from Yanbu on the Red Sea have declined by 41%, falling to approximately 2.39 million bpd as of June, according to Wood Mackenzie vessel tracking data. This decline reflects a broader shift away from traditional export routes through the Strait of Hormuz due to regional tensions and conflict in the Middle East. The redirection of Saudi crude exports via Yanbu was initially seen as a strategic move to mitigate risks associated with the Strait of Hormuz. However, recent escalations involving Iran-aligned Houthis have targeted this new route at Bab al-Mandeb, raising concerns about another critical chokepoint for global oil supply. Analysts warn that reliance on the Red Sea may not be any more secure than previous routes. The Houthi group recently claimed responsibility for striking two Saudi tankers in the Bab el-Mandeb Strait, signaling a potential escalation of threats to regional crude shipments.
Topics: geopolitical risk Houthis oil exports Red Sea chokepoint Yanbu pipeline