Aramco Diversifies Oil Exports Amid Strait of Hormuz Crisis

Saudi Aramco is exploring an alternative to its typical oil exports route through the Strait of Hormuz, citing conflict in the region. The company is assessing whether it can deliver more cargoes from Yanbu, a port on the Red Sea, instead.

This move comes as Saudi Arabia produces about 10 million barrels a day of crude, with exports rising to around 7.2 million barrels a day last month. However, due to pipeline constraints and potential shipping risks in the Red Sea, Aramco's current capacity might not be enough to cover all its overseas sales.

The East-West Pipeline, which spans 746 miles across the country, currently has a 5 million barrel-a-day capacity. While this gives Saudi Arabia an alternative export route, it also raises concerns about storage tank fill-up and potential production cuts if maritime traffic continues to slow down.