Riyadh, Saudi Arabia. Saudi Arabia’s oil shipments via the Red Sea are set to reach record highs in March, although they remain below levels needed to offset the loss of flows from the Strait of Hormuz, shipping data showed on Tuesday.
Yanbu loadings rise in early March
The kingdom relies on the Red Sea port of Yanbu to help boost exports as neighbouring Iraq, Kuwait and the United Arab Emirates have reduced output amid the U.S.-Israeli war with Iran. Yanbu loadings averaged 2.2 million barrels per day in the first nine days of March, up from nearly 2 million bpd last week and 1.1 million bpd in February, LSEG data showed.
Hormuz flows disrupted and pipeline capacity outlined
Saudi Arabia exported around 6 million bpd through the Strait of Hormuz before the war effectively shut the passage in late February. Aramco said on Tuesday during its results call that its pipelines can move up to 7 million bpd to the Red Sea, with 5 million bpd available for exports and the remainder supplying domestic refineries on the western coast.
Production cut and tanker activity
Saudi Arabia has cut production to around 9.8 million bpd from 10.9 million bpd in February, when it boosted exports above its OPEC quota in preparation for possible supply disruptions, according to Energy Aspects estimates. LSEG data showed 37 tankers are expected to load at Yanbu in March, including 11 that have already departed.
Export outlook and port capacity
Kpler’s shipping data indicated at least 40 tankers might load in March, potentially pushing exports above 4 million bpd. Traders said the port has capacity to handle more than 4.5 million bpd, though it has rarely loaded more than 2.5 million bpd.
Security risks on the Red Sea route
The Red Sea route also carries security risks from Yemen’s Houthi forces, whose attacks disrupted shipping during the Israel–Gaza conflict.
How could higher Yanbu loadings affect global oil supply expectations in the coming weeks?
