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Saudi Oil Blocked: 55M Barrels Stranded
1 Apr
Summary
- 55 million barrels of Saudi crude are stranded in the Persian Gulf.
- Saudi crude exports fell by half in March due to Iran's blockade.
- Saudi Arabia rerouted flows to its west coast via the East-West pipeline.
Saudi Arabia is facing a significant challenge as around 55 million barrels of crude oil remain stranded in the Persian Gulf. This situation arose after Iran effectively blocked tankers from leaving the crucial Strait of Hormuz. Consequently, Saudi crude oil exports were halved in March, dropping to an average of 3.33 million barrels per day.
To circumvent this blockade, the kingdom swiftly rerouted oil flows to its west coast terminals. The extensive East-West pipeline, with a capacity of approximately 7 million barrels per day, was utilized to transport crude from eastern oil fields to ports on the Red Sea. By late March, shipments from Yanbu were approaching 5 million barrels per day, primarily destined for Asian customers.
Despite the partial blockade, some Saudi barrels did manage to exit the Gulf, though the volume was significantly reduced compared to previous months. Saudi Arabia also continued to supply customers in Europe and North America from storage facilities on Egypt's Mediterranean coast and utilized leased tanks on Okinawa, Japan.
