Aramco Considers Oil Price Hike as Shipping Costs Rise

Saudi Aramco is considering a new pricing scheme for crude oil exports to Asia due to increased shipping costs resulting from changes in export routes. The diversion of shipping routes is estimated to add costs of up to US$5 per barrel.

The move follows an increase in shipping costs due to changes in export routes. Quoted from Reuters, the price change is still under internal discussion. Three sources familiar with the plan said the adjustment was made after exports were diverted through the Suez-Mediterranean (Sumed) pipeline.

Last week, the Iran-backed Houthi group in Yemen imposed a blockade on Saudi oil shipments through the Bab el-Mandeb Strait in the Red Sea. This forced the world's largest oil exporter to divert more supplies through Egypt.