Saudi Export Crisis Deepens as Aramco Suspends Yanbu Loadings

The suspension follows a week of mounting instability after satellite imagery confirmed strikes on the East-West pipeline, a vital artery for Saudi oil exports. By halting transit through this Hormuz bypass, the kingdom has lost its primary wartime export outlet, forcing producers to contend with the high-risk transit through the Strait of Hormuz. The situation is further complicated by prohibitive logistics; chartering a Very Large Crude Carrier in the Persian Gulf now costs between $30 and $32 per barrel once war risk premia and specialized insurance are accounted for.

European refiners are already feeling the pressure, with Saudi Aramco canceling select late-September crude cargoes for term buyers. While Saudi officials seek to pivot exports back toward Gulf terminals, the capacity to replace Red Sea volumes remains heavily constrained. Meanwhile, regional benchmarks in Asia continue to surge, with futures on the Shanghai Futures Exchange hitting a record $138 per barrel on Tuesday as Chinese refiners compete for dwindling October supplies.