Saudi Arabia Pivots Oil Exports Following Pipeline Drone Attacks
Following recent drone attacks that forced the closure of its vital East-West pipeline, Saudi Aramco is adjusting its logistics to maintain supply levels for Asian clients. The state-owned oil giant is now offering additional crude shipments, including Arab Light, Medium, and Heavy grades, via ship-to-ship transfers off the coast of Oman’s Sohar port. By utilizing this location outside the Strait of Hormuz, the kingdom is bypassing the shipping disruptions caused by the pipeline damage, which had previously restricted its ability to move oil to the Red Sea port of Yanbu.
To further stabilize exports, Saudi Arabia has significantly ramped up daily crude loadings at its Ras Tanura and Juaymah terminals within the Gulf. Satellite tracking data highlights a marked increase in the use of Very Large Crude Carriers (VLCCs) to shuttle supplies, a strategy now being mirrored by other regional producers seeking to maintain market flow. While these measures aim to offset the suspension of operations at Yanbu, some Asian and European buyers have already been notified of potential delays or cancellations for upcoming September cargoes as the energy sector navigates the fallout of the infrastructure damage.