Saudi Oil Flows Through Red Sea Despite Houthi Threats

The ongoing conflict in the Middle East has not disrupted the flow of oil from Saudi Arabia's Red Sea coast, despite warnings and attacks by Yemen's Houthi militants. The situation remains tense, with Western shipowners opting to avoid the Bab el-Mandeb strait or sailing through it with their transponders turned off.

Millions of barrels of crude are still being shipped from Saudi Arabia to the global market via the Red Sea port of Yanbu, which has become an important workaround for oil shipments. The port's loading activity appears to have slowed down, but satellite images show tankers moored at four of the seven crude berths across the two Yanbu terminals.

Some Asian oil buyers are considering rerouting flows around Africa, with reports suggesting that at least one very large crude carrier has been provisionally arranged to pick up a cargo from Egypt's northern coast for delivery to South Korea via the Cape of Good Hope. This is a significant development, as it would be the first such charter in years.