Oil export routes face pressure as Cyprus regulator and debt issues come into focus

Riyadh, Saudi Arabia. Attacks around the Strait of Hormuz and the Red Sea are pushing oil exporters towards pipelines, alternative ports and longer tanker routes, while Cyprus developments have highlighted regulatory activity and persistent private-sector debt.

Oil export routes under pressure

The Middle East’s oil map is being reshaped at sea as exporters seek alternatives to routes affected by attacks around the Strait of Hormuz and the Red Sea.

Saudi Arabia’s East-West oil pipeline, which transports crude across the kingdom to the Red Sea port of Yanbu and enables exports to bypass Hormuz, was temporarily shut following a drone attack over the weekend, Reuters reported on Monday.

The disruption came while shipping through Hormuz remained at a fraction of normal levels. Some alternative routes that had largely been considered backup options are also coming under pressure.

Oil producers are increasingly seeking more than one route to bring crude to market, rather than focusing only on the lowest-cost option.

CySEC chairman cites regulatory changes

Outgoing Cyprus Securities and Exchange Commission chairman George Theocharides identified three changes that he said defined his six years at the regulator.

A five-year review recorded more than 4,000 supervisory checks and over €12 million in administrative sanctions during the period.

Theocharides said in what he described as his final post as CySEC chairman that he had been informed a few days earlier that he would not continue at the regulator. His term followed his appointment as vice-chairman in July 2020 and as chairman in September 2021.

He thanked market participants, service providers, government officials, MPs and colleagues at European and international regulatory bodies. He gave particular recognition to CySEC staff, saying they deserved most of the credit for establishing the commission as a strong, credible and forward-thinking organisation.

Private debt remains a challenge in Cyprus

Cyprus has largely reduced non-performing loans in its banking sector, but a substantial private debt problem remains outside bank balance sheets, according to Xenios Socratous of the Central Bank of Cyprus’ risk analysis section.

In analysis published on the central bank’s website, Socratous said Cyprus had undergone one of Europe’s most dramatic banking transformations, moving from non-performing loan levels approaching half of total lending to asset-quality indicators broadly aligned with the European Union average.