Asian refiners resist Aramco Red Sea oil loading plan amid Houthi threat
What's new: Some buyers asked to load September cargoes at Egypt's Sidi Kerir instead, while one may skip its monthly allotment over higher shipping costs.
Asian refiners are pushing back on Saudi Aramco’s request to collect September crude cargoes at Yanbu on the Red Sea, as attacks by Iran-backed Houthi militants make it harder and costlier to secure ships for the route. Traders said at least two refiners asked whether they could instead lift cargoes from Egypt’s Mediterranean port of Sidi Kerir, though that option would require sailing around Africa to reach Asia. Aramco asked Japanese and South Korean refiners to load in Egypt, while most buyers in China, Taiwan and India were told to take cargoes from Yanbu. One refiner may skip its monthly allocation because of the added logistics costs. Yanbu has become more important to Saudi exports after conflict disrupted traffic through the Strait of Hormuz.