Saudi Arabia Reroutes Oil via Egypt as Houthi Blockade Squeezes 2.5 Million bpd Escape Route
Updated
Updated · OilPrice.com · Aug 2
Saudi Arabia Reroutes Oil via Egypt as Houthi Blockade Squeezes 2.5 Million bpd Escape Route
3 articles · Updated · OilPrice.com · Aug 2
Summary
At least three Saudi VLCCs have shifted crude from Yanbu to Egypt’s Ain Sukhna for the SUMED pipeline after Houthi threats made the Red Sea route unsafe for Saudi vessels.
The move follows a sharp erosion in Saudi’s fallback export system: Yanbu loadings fell to about 2.39 million bpd in June, down 41% from the March peak after Hormuz traffic resumed briefly and then shut again.
SUMED can carry 2.5 million bpd and the Suez Canal about 1 million bpd, but analysts say prior reservations and physical limits make it impossible to replace Saudi’s former east-west export volumes at scale.
Egypt’s route is also under pressure after drones struck two LNG tankers at Damietta last week, underscoring how the conflict is spreading from Hormuz and the Red Sea into Mediterranean energy corridors.
Hormuz traffic has improved only modestly to about 13 million bpd—roughly 65% of pre-war levels—leaving Saudi exports vulnerable to further declines unless the Houthi blockade eases.