Saudi oil exports shift to Red Sea as Yanbu loadings hit 3.8 million bpd

Saudi Arabia is increasing crude exports through its Yanbu port on the Red Sea, with loadings expected to reach a record 3.8 million barrels per day in March following disruptions to shipments via the Strait of Hormuz.

Shipping data shows average loadings at Yanbu have already risen to 2.6 million bpd so far this month, compared to 1.4 million bpd in February and 1.3 million bpd in January.

The shift comes after the Strait of Hormuz, a key export route, was effectively disrupted in late February, prompting Saudi Arabia to redirect flows through alternative infrastructure.

The kingdom is using its East-West pipeline, which has a capacity of up to 7 million bpd to Yanbu, allowing it to sustain exports despite regional disruptions.

Of this capacity, around 5 million bpd is available for exports, while the remainder supplies domestic refineries.

Data indicates that about 70 tankers are scheduled to load at Yanbu in March, with nearly 40 vessels still en route.

Most shipments are bound for Asia, with China accounting for approximately 2.2 million bpd, making it the largest destination.

To increase throughput, Saudi Arabia is using drag-reducing agents to improve pipeline flow efficiency, a method that can raise flow rates by more than 30%.

Before the disruption, Saudi Arabia exported around 6 million bpd through the Strait of Hormuz.

Production has also declined by around 2 million bpd to about 8 million bpd following output reductions at offshore fields.

The Red Sea route carries security considerations, though recent data indicates vessel traffic through the Red Sea and Bab el-Mandeb Strait has returned to normal levels, with around 40 transits recorded in the past 24 hours.

Officials said the rerouting of exports reflects adjustments by major producers to maintain supply amid changing regional conditions.