At least two Asian refiners have asked Saudi Aramco to move contracted September crude loadings from Yanbu on Saudi Arabia’s Red Sea coast to Egypt’s Mediterranean port of Sidi Kerir as they struggle to secure tankers willing to use the Red Sea route, according to Bloomberg. The refiners were not identified.
At least one could skip its September allocation because lifting crude at Sidi Kerir and shipping it around Africa to Asia would increase freight costs. The cargoes are covered by long-term supply contracts.
The request adds to mounting pressure on Saudi crude logistics. Japanese and South Korean refiners were offered Sidi Kerir for September cargoes, while most buyers in China, Taiwan and India were directed to Yanbu. The total volume of September allocations has not been disclosed.
Asian buyers have faced uncertainty over vessel availability, with few shipowners willing to enter the Red Sea or the Strait of Hormuz. Arab Light has been routed through Yanbu and offered from Sidi Kerir, while Arab Medium and Arab Heavy have also been offered through ship-to-ship transfers off Fujairah in the United Arab Emirates.
Crude can move from Egypt’s Red Sea terminal at Ain Sokhna through the SUMED pipeline to Sidi Kerir on the Mediterranean. Crude and condensate loadings at Sidi Kerir averaged a record 2.17m barrels per day in the week beginning 3 August, about 50% above the previous week, with Saudi crude accounting for around 90% of the total. All Yanbu crude liftings in the previous week were carried out without publicly visible Automatic Identification System signals.
About 70% of Saudi west coast loadings over recent weeks also involved vessels operating without continuous AIS coverage.
September pricing for Saudi Aramco’s main crude grade in Asia was cut to its lowest level since 2020, although those prices apply to cargoes loaded at Ras Tanura in the Persian Gulf. Cargoes collected farther west carry additional logistics costs.
Saudi Arabian Oil Co, known as Saudi Aramco, is Saudi Arabia’s integrated oil and chemicals producer. The Saudi government owns more than 81.48% of the company.