Saudi Aramco Halts Yanbu Loadings, Sending Brent Crude Prices Soaring

Saudi Arabia's oil crisis deepened as Saudi Aramco suspended loadings from the Red Sea port of Yanbu, sending Brent crude prices back to $108 per barrel. The move comes after the halt of the East-West pipeline and is expected to impact exports from Saudi terminals in the Gulf.

Asia's oil industry is facing a double whammy of supply shortages and better-than-expected demand, with crude differentials across the region gradually climbing towards record highs. China's crude throughput rose 11% month-on-month to 13.9 million b/d in August as refiners ramped up fuel exports after Beijing lifted its export ban.

However, replacement of Red Sea flows is hindered by record tanker rates near $1 million/day, forcing Middle Eastern producers to risk transiting Hormuz with their own fleet. US President Trump said Ukraine and Russia agreed to halt strikes on energy infrastructure, but neither side fully confirmed a reciprocal deal after several previous deals collapsed within several days.