Security Risks Prompt Saudi Arabia to Change Oil Export Route Again

RIYADH/NEW YORK: Saudi Arabia has once again changed its shipping routes for crude oil exports to global markets amid growing security risks in the Red Sea and the Bab al-Mandab Strait.

Following threats of attacks by Houthi rebels targeting vessels passing through the strategic waterway, Saudi Arabia has begun diverting oil tankers from the southern route to alternative routes further north.

Under the new arrangement, Saudi crude oil is being transported to the Red Sea port of Yanbu, from where it is moved to Egypt’s Ain Sokhna port. The crude is then transported through the SUMED pipeline to Sidi Kerir on Egypt’s Mediterranean coast.

The alternative route allows Saudi Arabia to continue supplying crude to buyers in Asia and Europe while reducing exposure to security risks around Bab al-Mandab.

Some oil shipments are also being routed around the Cape of Good Hope, while other supplies are being transported through open waters in the Gulf of Oman to avoid vulnerable shipping lanes.

The diversion of oil shipments is increasing transportation distances and delivery times, while also pushing up fuel and shipping costs. The changes could add further pressure to global energy supply chains and international oil markets.

The Bab al-Mandab Strait connects the Red Sea with the Gulf of Aden and is one of the world’s key maritime routes for energy and commercial shipments. Continued security threats in the area have emerged as a major challenge for oil producers, traders and shipping companies.