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Saudi Arabia ramps up Gulf oil exports after pipeline attack, data shows
Reuters • • business
Key Points:
- Saudi Arabia is showing signs of a partial recovery in oil shipments, with seven tankers loaded and satellite data indicating an increase in oil flow through the Strait of Hormuz to 2.9 million barrels per day, up from 700,000 bpd in August.
- The shift in crude loadings from the Red Sea to the Middle East Gulf has occurred after drone attacks forced the shutdown of the East-West Pipeline and halted loadings at the Yanbu port on the Red Sea.
- Since September 12, Saudi Gulf crude loadings have averaged about 3.7 million bpd, an increase from 2.9 million bpd earlier in the month, while Red Sea loadings averaged 3.9 million bpd in early September before the pipeline disruption.
- Saudi Arabia has adjusted its sales strategy by canceling some crude cargo sales to Europe and boosting shipments to Asia, with about 60 million barrels sold from the Ras Tanura port for ship-to-ship transfer at the Omani port of Sohar.
- These developments have contributed to downward pressure on oil prices, pushing the Brent benchmark below $100 a barrel for the first time since September 9.
