Asian Refiners Resist Yanbu Loading Amid Red Sea Threat

Asian refiners are pushing back against Saudi Aramco's request to load oil at Yanbu on the Red Sea due to security concerns. Recent attacks by Houthi militants have made it difficult for shipowners to navigate the region, leading some buyers to seek alternative ports.

At least two Asian refiners have asked Aramco if they can take their purchased oil cargoes from Egypt's Mediterranean port of Sidi Kerir instead. This request relates to cargoes scheduled for collection in September under long-term contracts with Aramco.

Some shipments of Saudi crude had already been diverted to Sidi Kerir prior to Aramco's September sales, and the company has asked Japanese and South Korean refiners to pick up their cargoes from this port. Most processors in China, Taiwan, and India were asked to collect their oil from Yanbu.

Refiners buy Saudi oil under long-term contracts with flexibility on when those volumes can be taken. A set amount of crude is purchased over the year, allowing buyers to reduce or skip their monthly allocation if needed.