Asian Refiners Divert Saudi Oil Cargoes to Avoid Red Sea Risks

At least two refiners in Asia have petitioned Aramco to facilitate the change for next month’s shipments, seeking to bypass the volatile waters where multiple tankers have faced attacks since late July. The logistical pivot relies on the SUMED pipeline, which transports crude from the Red Sea coast to the Mediterranean. However, the shift is not a simple solution for everyone; some buyers are weighing whether to abandon their monthly allocations entirely, as the detour around Africa to reach Asian markets imposes significant additional shipping costs.

Saudi Arabia has already been utilizing the Ain Sukhna-to-Sidi Kerir pipeline route to maintain supply flows, even as it continues to designate Yanbu as the primary pickup point for most major importers in China, India, and Taiwan. While Aramco has successfully redirected some September volumes for South Korean and Japanese clients to the Mediterranean, the broader industry remains on edge. The Houthis have signaled that vessels with Chinese ties may be exempt from their blockade, yet the uncertainty continues to disrupt standard supply chains and force refiners to calculate the price of safety against the mounting expense of longer transit routes.