Saudi Arabia's oil exports through the Mediterranean port of Sidi Kerir have surged to approximately 2.3 million barrels per day in August, up from around 1 million bpd in July, according to Kpler. This increase is largely attributed to Saudi crude, as the kingdom seeks alternatives to the Red Sea due to Houthi attacks on its tankers and a maritime embargo declared by the Houthis.
Matt Smith, director of commodity research at Kpler, emphasized that this is not a temporary measure but a significant strategic shift for Saudi Arabia. The Sumed pipeline connects Sidi Kerir to the Red Sea port of Ain Sokhna, allowing supertankers to bypass the Suez Canal's weight restrictions.
The recent geopolitical tensions have pressured Saudi exports, particularly through the Bab el-Mandeb Strait, where shipments from Yanbu have plummeted nearly 90% since the embargo was announced. Saudi Aramco's CEO, Amin Nasser, indicated that the company has alternative routes to the Mediterranean, although these may involve longer and costlier journeys around Africa.
Most of the crude from Sidi Kerir is now directed towards the U.S. and Europe, suggesting a shift in market dynamics as Asian customers may find it less cost-effective to transport oil via the longer route. Despite these adjustments, risks remain, as evidenced by recent drone strikes on LNG ships at Egypt's Port of Damietta, highlighting the ongoing volatility in the region