Saudi Arabia's state oil company Aramco is attempting to reroute some of its crude exports to the Red Sea to avoid the Strait of Hormuz, where the risk of Iranian attacks has
Saudi Arabia's state oil company Aramco is attempting to reroute some of its crude exports to the Red Sea to avoid the Strait of Hormuz, where the risk of Iranian attacks has slowed shipping to a near halt, sources said on Tuesday.
Saudi Arabia and other regional Gulf oil producers, such as the United Arab Emirates, Kuwait and Iraq, have been unable to move oil through the Strait since the U.S. and Israel launched attacks on Iran on Friday. Hundreds of ships have anchored on either side of the Strait as a precaution, and Iran has said it would fire on any vessel that attempted to transit the shipping choke point.
Global oil benchmark Brent crude futures have risen 12% so far this week as the conflict disrupts oil and gas supplies.
Without exports, oil producers will have to cut output when they fill storage. Iraq has already cut output by nearly 1.5 million barrels per day because tanks are brimming.
Saudi Aramco aims to avert cutting production by rerouting some supplies to the Red Sea port of Yanbu.
Aramco has informed some buyers of its Arab Light crude that they must load cargoes at Yanbu, three sources said.
Aramco
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