Shipping data show that Saudi Arabia's Red Sea Yanbu port exported nearly 4 million barrels of crude oil per day in the past week. This is a significant increase over exports before the Iran War broke out. Saudi Aramco is working on a plan that will send crude oil along its East-West Pipeline to Yanbu in order to offset the effective closure of Strait of Hormuz because of the conflict. Aramco said on March 10 that it could pump up to seven million barrels per day (bpd) through the pipeline to Yanbu, of which around five million could be exported, and the remainder would supply local refineries. Kpler reported that total Saudi crude exports in February exceeded 7 million barrels per day. Most of this oil passed through the Strait of Hormuz.

Kpler data showed that crude exports via Yanbu were averaging 2.9 million bpd in March. This is in line with the figures from LSEG. This is a significant increase from the average 770,000 bpd of January and February.

According to Kpler and LSEG, exports soared in the week beginning March 16 to nearly 4 million bpd. They are expected to continue to increase. Johannes Rauball, Kpler analyst, said that the upward trend is expected to continue. Exports could reach around 5 million barrels per day by the end the month. This would be close to Yanbu’s maximum loading capacity. Braemar, a ship broker, reported that 33 VLCCs (very large crude carriers) have taken oil out of Yanbu since February 28. According to estimates, the average earnings of tankers on voyages between the Red Sea and Asia are at their highest level in nearly six years. They now reach nearly $270,000 per day. In a Monday report, ship broker BRS stated that "the Middle Eastern crude tanker market remains chaotic as many Saudi Arabian cargoes are now rerouted through Yanbu." Yanbu temporarily halted loadings after an Iranian drone attack on a refinery in the area. The United Arab Emirates has also used its pipeline to divert crude oil shipments. Crude exports from the port of Fujairah, on the Gulf of Oman, have increased. Rauball reported that exports from Fujairah had averaged?1.62m bpd for the month of March, compared to 1.17m bpd during February. Exports fell to 790,000. bpd from 2.2. million bpd the week of March 9 following Iranian attacks. (Editing by Bernadette, Aidan, Alex, and Lawler, Emelia Sithole, Matarise, and Emelia Sithole, Baum)

(source: Reuters)