Saudi Arabia increases Mediterranean crude exports as Red Sea security concerns continue

Saudi Arabia is increasingly redirecting crude oil exports through Egypt's Mediterranean port of Sidi Kerir as ongoing security threats in the Red Sea continue to disrupt normal shipping routes. According to recent shipping data, at least eight Very Large Crude Carriers (VLCCs) are scheduled to arrive at Sidi Kerir by mid-August after Saudi Aramco allocated additional export cargoes through the terminal.

At the same time, no oil tankers were reported at Yanbu, Saudi Arabia's main Red Sea export terminal, highlighting growing caution among shipowners following recent attacks by Yemen's Houthis.

SUMED pipeline becomes a key export route

To avoid the security risks around the Bab el-Mandeb Strait, Saudi crude is first transported from Yanbu to Ain Sukhna on Egypt's Red Sea coast. The oil is then moved through the SUMED pipeline to Sidi Kerir on the Mediterranean before being loaded onto export tankers.

This alternative export corridor has become increasingly important as heightened regional tensions have reportedly prompted some marine insurers to limit coverage for vessels calling at certain Saudi ports.

Regional shipping remains under pressure

Although shipping activity through the Strait of Hormuz remains below normal levels, vessel traffic in the Bab el-Mandeb Strait has become increasingly selective. Market data indicates that Chinese vessels and ships from countries maintaining close ties with Iran continue to use the route, while many Western and Asian shipowners are opting for longer and more expensive alternative routes to reduce security risks.

Shipping activity has also reflected continued caution, with some tankers entering the Persian Gulf while keeping their tracking systems switched off, underscoring ongoing concerns over maritime security across the region.

Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.