Asian Refiners Resist Saudi Oil Shipping at Risky Red Sea Port

Asian refiners are pushing back against Saudi Aramco's request to pick up oil at Yanbu on the Red Sea due to safety concerns. The Red Sea has become a high-risk area following recent attacks by Iran-backed Houthi militants on tankers and energy infrastructure.

The two Asian refiners, who asked not to be named, have requested to take their purchased oil cargoes from Egypt's Mediterranean port of Sidi Kerir instead. However, at least one of the refiners may decide to skip its monthly allocation due to higher costs associated with shipping crude around Africa.

Aramco had previously diverted some shipments of Saudi crude to Sidi Kerir prior to September sales, and now it is asking Japanese and South Korean refiners to pick up their cargoes from the Egyptian port. In contrast, most processors in China, Taiwan, and India were asked to collect their oil from Yanbu.

The overall volume allocated by Aramco for next month isn't clear, but traders said the amount sold to refiners in countries outside of China was broadly in line with recent months. Prior to the Houthi threats, all Saudi oil bound for Asia would be loaded at Yanbu and sail through the Bab el-Mandeb strait.