Aramco shuts Jazan refinery after Houthi attack
Saudi Aramco shut down its 400,000-barrel-per-day Jazan refinery on July 27 following a strike by Yemen’s Houthi militants. The damage affected the plant's power and storage systems, with repairs expected to take until August 15. The shutdown highlights vulnerabilities in global refining capacity, particularly for diesel and jet fuel—products that are harder to substitute than crude oil. Refining margins have already surged due to geopolitical tensions and reduced spare capacity, making this outage more impactful on the market than a simple loss of crude production. Jazan is one of Saudi Arabia’s key refineries exporting refined products directly via the Red Sea, bypassing the Strait of Hormuz. Its closure removes over 200,000 barrels per day in exports, with diesel and gasoil making up more than half.
Topics: crude vs refined fuel markets fuel supply chain disruption Houthi attack oil refinery shutdown