Saudi Oil Exports Plunge Amid Houthi Threats

Saudi Arabia has been cutting back on oil exports through the Red Sea due to the threat of attacks from Yemen's Houthi rebels. The Houthis announced a maritime embargo against Saudi Arabia on July 20, and since then they have claimed attacks on tankers linked to Saudi Arabia, as well as oil facilities in Yanbu and the Jazan refinery on the Red Sea coast.

Oil prices have risen due to these strikes on vessels and the deadlock in talks with Iran. To avoid detection, an increasing number of vessels are making 'dark voyages' by switching off their automatic identification system (AIS), so that their location is not available in public tracking systems.

Data on Saudi Arabia's exports vary significantly, with estimates of export volumes differing substantially. Analysts report that all recent oil loadings in Yanbu took place without a continuous AIS signal, resulting in varying estimates. Last week, all liftings in Yanbu were conducted in the dark, and at present, no loadings with the automatic identification system (AIS) switched on are being seen.

In contrast to these declines, Saudi Arabia is increasing oil transportation northward through the Red Sea, the Suez Canal, and Egypt's SUMED pipeline. According to Vortexa, last week the average volume of crude oil and condensate loaded at Egypt's Sidi Kerir reached a record 2.17 million barrels per day, with about 90% of this volume consisting of Saudi oil.