Fresh tanker attacks sharpen crude importers’ Red Sea vs Hormuz dilemma
- Crude oil loadings at Yanbu reached a 10-year high in June as Saudi Arabia continues to divert barrels with the ongoing Hormuz conflict
- Recent piracy attacks in the Red Sea are unlikely to deter tanker transits as it is currently a better alternative to Hormuz
- Some refiners have no choice but to import from the MEG because of the difference in crude slates available at Yanbu and Saudi Arabia’s eastern ports
- Logistical constraints, in the form of delays, remain even if tankers comply with PGSA’s transit guidelines
Some refiners are picking the lesser evil, choosing Yanbu in the Red Sea for crude imports. But new attacks on two vessels this morning complicates matters for refiners, who have no choice but to import barrels from the MEG
