Saudi Oil Exports Surge via Mediterranean to Avoid Houthi Attacks

Crude oil (tracked through the United States Oil Fund, USO) traded at 134.64 dollars, up 0.07% on the day, with the fund sitting near the top of its 52 week range of 102.42 to 142.33 and an RSI of 61.37 that points to steady, not overheated, buying interest. Behind that quiet tape sits a much busier story out of the Red Sea, where Saudi oil exports have been rerouted to dodge a renewed threat from Yemen's Houthi movement.

In Brief

• Saudi Aramco has lifted crude shipments through Egypt's Sidi Kerir terminal by roughly a third over the past month.
• A new shuttle route now runs oil from Yanbu on the Red Sea to Ain Sukhna, then onward by pipeline to the Mediterranean.
• Northern Red Sea route volumes have climbed to about 1.1 million barrels a day, according to Kpler data.
• The detour adds close to a month of transit time for cargoes headed to Asian refiners.
• USO trades at 134.64 dollars, near its 52 week high, with an RSI of 61.37.

Why Saudi Oil Exports Are Taking the Long Way Around

Aramco, still the world's largest single crude exporter, began moving barrels north from its Yanbu port after the Houthis renewed threats against Saudi shipping in the southern Red Sea and the Bab el Mandeb Strait. Tanker tracking data compiled by Bloomberg shows exports through Sidi Kerir on Egypt's Mediterranean coast have risen about 33% in the past month alone. Operators including South Korea's Sinokor, Norway's DHT Management and Greece's Dynacom have all taken part in ferrying crude along the new corridor.

The Yanbu to Sidi Kerir Workaround

The mechanics are straightforward but costly in time. Tankers load at Yanbu and sail north to Ain Sukhna, where the oil is offloaded and pushed through the SUMED pipeline to Sidi Kerir on the Mediterranean side. At least four vessels have made that run more than once recently, together moving over 16 million barrels. From Sidi Kerir, cargoes bound for Asia must then travel the long way, through the Mediterranean and around the Cape of Good Hope, adding roughly a month to delivery compared with the direct Red Sea to Indian Ocean path.

What This Means for Asian Refiners and Oil Prices

Some Asian refiners have already asked Aramco to have them collect crude directly from Sidi Kerir rather than wait for the longer voyage, a sign that buyers are adjusting their own logistics around the risk. For now, none of this disruption has translated into a dramatic price spike. USO's move of just 0.07% suggests traders see the rerouting as manageable rather than a supply shock, even as the added shipping time and higher freight costs quietly raise the landed cost of Saudi barrels in Asia. A stronger dollar and ample global inventories have also kept a lid on any panic buying.

Will the Red Sea Detour Become the New Normal for Saudi Crude?

The longer this workaround runs, the more it could reshape shipping patterns and costs across the Saudi export network, particularly if Houthi activity in the Bab el Mandeb persists. Traders will be watching whether more Asian buyers ask for pickup at Sidi Kerir and whether the extra month of transit time starts showing up in freight rates or in the premium Asian refiners pay for Gulf crude.

Frequently Asked Questions

What does Saudi Arabia export?

Saudi Arabia's exports are dominated by crude oil and refined petroleum products, though the country also ships petrochemicals and, in smaller volumes, natural gas liquids.

Can Saudi Arabia export oil?

Yes, Saudi Arabia is the world's largest single crude oil exporter, shipping millions of barrels a day through ports on both the Red Sea and the Persian Gulf.

How does Saudi Arabia export oil?

Crude moves by tanker from terminals such as Yanbu on the Red Sea and Ras Tanura on the Gulf coast, with pipelines like SUMED used to cross overland when sea routes are too risky.

Does Saudi Arabia export LNG?

Saudi Arabia does not currently export liquefied natural gas; its gas production is largely consumed domestically for power generation and industrial use.

Does Saudi Arabia export gas?

The kingdom exports some natural gas liquids and petrochemical byproducts, but it is not a major exporter of pipeline or liquefied natural gas compared with its oil trade.

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