Saudi Oil Exports Rise Amid Pipeline Suspension
Saudi Arabia has increased oil exports from its eastern ports since the suspension of the East-West pipeline, according to satellite observations.
Transits rose from 1.2 million barrels per day on September 1 to 1.9 million bpd on September 16, based on a 28-day moving average compiled by maritime intelligence company Vortexa.
This increase in oil flows via the Strait of Hormuz signals a shift in Saudi Arabia's export strategy, as the damaged East-West pipeline restricts its oil loadings at Yanbu, said Xavier Tang, a senior market analyst at Vortexa.
The term 'shuttling' refers to short-haul journeys in which vessels, escorted by the US Navy, carry oil from Saudi terminals to larger tankers anchored in the Gulf of Oman. This method is being used more frequently due to the pipeline closure and conflict with Iran-backed Houthis, who are preventing Saudi vessels from passing through the Bab al-Mandab strait.