Download App

[Shipping artery disrupted, Saudi Arabia urgently opens new channels, drastically changing crude oil supply landscape] ⑴ Latest data shows that Saudi Arabia is urgently adjusting its crude oil export strategy. Affected by the disruption of shipping through the Strait of Hormuz, state-owned giant Saudi Aramco has requested Asian buyers to submit dual loading plans for cargoes shipped in April, namely, nominations from both Rastanura, a major export port on the Persian Gulf coast, and Yanbu, a port on the Red Sea coast. ⑵ This move comes against the backdrop of escalating regional conflicts, which have brought shipping through the Strait of Hormuz, the world's most important oil transport chokepoint, to a near standstill since late February. This has forced Gulf oil-producing countries, including Saudi Arabia, to quickly adjust their export logistics routes. To ensure supply to Asia, its largest market, Saudi Aramco is diverting some exports to the Red Sea, transporting crude oil to Yanbu port via pipeline. ⑶ This adjustment has already shown initial results. In the first nine days of March, the average crude oil loading volume at Yanbu port surged to 2.2 million barrels per day, more than doubling from 1.1 million barrels per day in February. As the world's largest oil exporter, Saudi Arabia previously transported approximately 6 million barrels of crude oil daily through the Strait of Hormuz. (4) Institutional research indicates that currently only Saudi Light crude oil can be exported through the port of Yanbu, and Saudi Aramco has given Asian buyers more time, extending the deadline for submitting nomination plans to this Friday. The crude oil quota allocation, usually announced around the 10th of each month, is closely watched by the market as it directly reflects the actual demand strength of the world's largest crude oil importer. This unique dual nomination requirement undoubtedly adds new uncertainty to the short-term market.