Iran Conflict Disrupts Trade, Saudi Aramco Cuts Exports to Asia

Saudi Aramco, the world’s largest oil exporter, has again cut crude oil supplies to buyers in Asia for the second month in April. Two sources familiar with the matter stated that this decision was taken after the US-Israel war with Iran disrupted trade routes through the Strait of Hormuz. The producer is only supplying Arab Light crude oil, exported from the Red Sea port of Yanbu, to contract customers in April. This situation keeps supplies to refineries in Asia tight and limits their production of refined products. In an official statement, Saudi Aramco said, “Saudi Aramco continues to ensure reliable energy supplies by utilising alternative export routes through Yanbu in response to regional dynamics.” “We remain committed to meeting customer expectations, with adjustments to delivery schedules according to the latest conditions, and ensuring customers receive information. Our priority is to maintain safe and reliable operations while supporting market stability during this period.” Saudi Arabia exported around 4.355 million barrels per day (bpd) of crude oil throughout March, according to data from analytics firm Kpler. This figure is down from 7.108 million bpd in February. The producer is attempting to increase crude oil exports through Yanbu to offset disruptions in the Strait of Hormuz, with shipping volumes estimated to reach a record high in March. China’s largest refiner, Sinopec, is scheduled to load around 24 million barrels of Saudi crude oil from Yanbu in that month. Oil shipments at the Yanbu port were disrupted on 19 March after a drone fell at the SAMREF refinery owned by Saudi Aramco.