Saudi Arabia Considers Higher Asia Crude Prices Due to Red Sea Shipping Costs

Saudi Arabia is considering raising the price of crude oil it ships to Asia due to increased shipping costs resulting from the Houthi maritime blockade in the Red Sea.

The potential price hike could reach $5 per barrel, according to unnamed sources cited by Reuters. This decision comes as Aramco redirects oil flows from its Red Sea port of Yanbu to Egypt's Ain Sukhra port, which then transports the crude via the Suez-Mediterranean pipeline to Asian markets.

The rerouting adds significant costs, with one source estimating an extra $10 million per cargo. Tankers are taking a longer route around Africa due to slowed traffic through the Bab el-Mandeb Strait in the Red Sea.