(Bloomberg) — Saudi Arabia exported record volumes of crude oil from terminals on the Red Sea in the days and weeks before the Houthis said they would block the nation’s shipments.
The kingdom’s ability to reroute oil flows from the Persian Gulf to its west coast and on to international markets has been pivotal in calming crude prices during the Iran war, but is now in jeopardy after the Yemen-based Houthis announce a blockade. Such a cordon, if successfully enforced, could add to a rally in futures, which were trading near $89 a barrel on Tuesday.
The Saudis shipped an unprecedented 5.9 million barrels of crude oil a day from their two terminals at the port of Yanbu in the week up to July 17, according to tanker tracking compiled by Bloomberg. Flows eased to 5.5 million a day in the seven days to July 20. The figures include deliveries to Jizan, where Saudi Aramco operates a refinery, and power plants on the Red Sea.
The Houthi blockade is in response to what they says is Saudi Arabia’s siege on the Yemeni capital, Sana’a, though the group also has links to Iran. The rebels also warned ship owners in an e-mail against calling at Saudi ports.
Saudi energy ministry officials didn’t immediately respond to a request for comment.
Despite the threats, vessels are still going to Saudi Arabia’s Red Sea ports and at least some Asian buyers are still sending their tankers there to pick up cargoes.
A Saudi-led coalition in Yemen said Monday it has begun implementing operational measures to protect ships in the Bab el-Mandeb Strait, a crucial chokepoint connecting the Indian Ocean to the Red Sea.
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