Houthi Blockade Raises Concerns Over Crude Oil Transport

Yemen's Houthi rebels have declared a blockade of the Red Sea, raising tensions in waters near Saudi Arabia. The government has launched an inspection of crude oil transport plans against domestic refiners.

As a result, refineries are considering changing their transport routes to reduce operational risks. This may lead to partial delays in September's volume due to increased transportation periods.

The Ministry of Trade, Industry and Energy surveyed domestic oil refineries on their August ship operation plans to understand the transportation plan for each refinery's expected volume in Korea in September.

Refineries that have been importing crude oil through the Red Sea since the blockade of the Strait of Hormuz are seeking alternative routes due to the increased risk of navigating the Babel Mandev Strait, where Houthi rebels have warned they will attack ships traveling to and from Saudi Arabia's crude oil terminal.

South Korea and other Asian oil refiners are considering shipping crude oil from Saudi Arabia's Yanbu port and then diverting through the Suez Canal to Asia. This method involves loading crude oil at Janbu Port, sending some supplies to the Mediterranean Sea through Egypt's Suez pipeline, and reloading onto ships that have passed through the Suez Canal.

Some observers say that some of the volume scheduled to be introduced in September may be delayed as it has to use a longer route than before. 'If you use an alternative route, it can take about two months for crude oil to arrive in a month,' an industry official said. 'There is a possibility that the loading schedule originally scheduled for September will be pushed back to October.'