Saudi Arabia Diversifies Oil Exports Amid Red Sea Threats

Saudi Arabia has significantly increased its oil exports through the Egyptian Mediterranean port of Sidi Kerir, bypassing routes through the Red Sea due to Houthi attacks on tankers. According to Kpler's data, exports from Sidi Kerir totaled about 2.3 million barrels per day in August, up from approximately 1 million barrels per day a month earlier.

The majority of these shipments consist of Saudi oil, and Matt Smith, Kpler's director of commodities research, believes that the increase indicates a shift in strategy or market conditions, rather than a short-term solution. The port of Sidi Kerir is connected to the port of Ain Sokhna on the Red Sea via the SUMED pipeline.

Previously, Riyadh had rerouted millions of barrels of oil per day from the eastern region to the port of Yanbu on the Red Sea coast due to traffic restrictions in the Strait of Hormuz. However, Houthi attacks on Saudi tankers have created risks for oil exports from Yanbu through the Bab el-Mandeb Strait.

The volume of Saudi exports from Yanbu through the Bab el-Mandeb Strait during the week of August 3 fell by nearly 90%, to 1.3 million barrels, compared to 11 million barrels during the week of July 20, when the Houthis announced a maritime embargo against the kingdom.