Exports from Saudi Arabia’s Red Sea oil export terminals via the Bab al-Mandeb are being disrupted following the Houthi’s 20 July announcement of a blockade on the kingdom (MEES, 24 July). Some tankers have continued to use the route, while others have opted to avoid the chokepoint between Yemen and Eritrea/Djibouti, diverting north towards Egypt’s Suez Canal. More such diversions can be expected after the Houthis claimed attacks on two Saudi tankers on 22 July (MEES, 24 July).
The Bab al-Mandeb offers the quickest route from Saudi Arabia’s Red Sea coast to its primary markets in Asia. Since Red Sea exports soared in March as a result of the Hormuz crisis, around 80% of its 4mn b/d crude oil (see chart 1) and 48% of the 1mn b/d refined products exports have transited the Bab al-Mandeb, according to Kpler data. But the risk of Houthi disruption has been a concern for some customers since the start of the conflict (MEES, 6 March)). (CONTINUED - 1724 WORDS)
