SAUDI Arabia has issued a fresh tender to sell 2 million barrels of its flagship Arab Light crude for loading later this month from the Red Sea port of Yanbu, according to traders cited by Reuters.
The move marks the kingdom’s fourth oil tender in recent weeks as it continues redirecting crude shipments away from the Persian Gulf toward the Red Sea. The shift reflects Riyadh’s efforts to maintain export flows by routing more barrels through infrastructure on its western coast, according to Oilprice.com.
To support the strategy, Saudi Arabia has been diverting onshore Arab Light volumes through the Petroline pipeline, which transports crude from eastern production hubs to the Yanbu terminal on the Red Sea. The pipeline has a capacity of about 7 million barrels per day, allowing the country to bypass traditional export routes in the Gulf.
As a result of the rerouting, crude exports from Yanbu have surged sharply. Data from maritime analytics firm Windward shows that shipments from the port have climbed to around 2.47 million barrels per day, representing a dramatic 330 percent increase compared with levels recorded before the recent regional conflict.
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The growing importance of the Red Sea route is also reflected in tanker traffic patterns. Shipping data indicates that 27 supertankers are currently heading toward Yanbu, significantly more than the 18 vessels bound for Jeddah. In contrast, smaller numbers of tankers are heading to other Red Sea ports, with three each en route to Jizan, Duba and Rabigh.
Earlier in the week, reports suggested Saudi officials had asked Asian buyers to nominate crude cargoes for April loading from the kingdom’s export terminals, including those in the east. However, sources told Reuters that Arab Light shipments tied to the latest tender would be loaded exclusively from Yanbu.
Despite the surge in shipments, logistical constraints remain at the Red Sea export hub. While the Petroline pipeline can theoretically transport up to 7 million barrels per day, loading capacity at Yanbu’s terminals is significantly lower. Energy analytics firm Vortexa estimates the port can handle crude loadings of roughly 3 million barrels per day at most.
Meanwhile, shipments routed through Yanbu are already reaching international buyers. A tanker that loaded about one million barrels of Saudi crude at the port earlier this month has arrived in India after successfully transiting the Strait of Hormuz, according to a report by The Hindu.
The vessel’s passage follows reports that Iran had agreed to allow Indian oil tankers to move through the strategic waterway after diplomatic talks between the two countries’ foreign ministers. Two additional tankers carrying crude to the Indian subcontinent were also reported to have recently crossed the strait, Reuters said, citing an unnamed source.
The developments highlight how Saudi Arabia is increasingly relying on its Red Sea export infrastructure to maintain crude flows to global markets while navigating the heightened geopolitical risks affecting shipping routes in the Gulf region.
Oil prices surged again on Thursday after Iran’s newly installed supreme leader, Mojtaba Khamenei, said the closure of the Strait of Hormuz should be maintained as a strategic lever against adversaries.
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Brent Crude stood at $100.7 per barrel at 10am Nigerian time, with WTI selling at $95.59. Murban Oil stood at $114.1 per barrel. In televised remarks broadcast by Iranian state media on Thursday, Khamenei said Hormuz, a critical global energy shipping route, must remain shut as a “tool to pressure the enemy.” He also demanded that all United States military bases across the Middle East be closed immediately, warning that they could face attacks if operations continue, reported CNBC.
The comments triggered fresh volatility in global energy markets, with oil prices extending gains shortly after the statement was aired.
