Saudi Arabia Increases Oil Exports Through the Port of Yanbu

Saudi Arabia is operating its Red Sea oil port of Yanbu at close to full capacity this week as tensions with Yemen’s Houthi rebels intensify and the kingdom seeks to maximize oil exports.

State-owned Saudi Aramco has increased its use of the terminal since the conflict between the United States, Israel and Iran began in late February. Riyadh is also considering expanding the capacity of the oil pipeline to the Red Sea coast, allowing Saudi Arabia and potentially neighboring countries to transport more crude without crossing the Strait of Hormuz.

According to Signal Ocean data, shipments from Yanbu reached about 4.7 million barrels per day around 13 July. Loadings have averaged more than four million barrels per day since June, compared with about 973,000 barrels during the same period last year.

OPEC’s largest producer is relying increasingly on Yanbu as disruptions to shipping through the Strait of Hormuz restrict oil exports from the Persian Gulf.

Tensions rose further after the Houthis fired missiles at Saudi Arabia on Monday. Industry sources fear that Yanbu could become the rebels’ next target, while the port is already operating close to its capacity limit.

(Reuters, bak)